In the global space, This week, U.S. equities pushed higher towards the end of the trading week, as investors recovered from a rather volatile September. Stocks received an additional boost at the late days of the trading week from the news of a new oral treatment for Covid 19 by MERCK, a multinational pharmaceutical company. Nonetheless, major market indexes closed out with losses for the week.
In the treasury space, treasury prices maintained its southward course as investors prepare for a reversal of the Federal Reserve’s easing policies. This week, prices on the U.S. 10-year Treasury Note declined further, citing the increase in yield to 1.50%, from 1.31% the previous week. Bond prices move in the opposite direction with yield.
Markets prepare for curveballs in the fourth quarter, with the first being September’s Job Report scheduled for release in the coming week. Investors would be reviewing the job report and evaluating its impact on the central bank’s decision to gradually put an end to its USD120bn-a-month bond-buying program.
On the domestic front, The Nigerian equities market ended the trading week with wins (+3.23%), largely driven by improved investor participation on shares of Dangote Cement (DANGCEM). As a result, the market’s year-to-date return strengthened to -0.12% (from -3.25% the previous week). Across sectors, all sectors closed with wins save for the insurance sector which lost 7.58% this week.
At the fixed income market, an auction for Treasury bills was conducted in the primary market. The auction was rather business as usual with static rates on the 91-day (2.50%) and 181-day notes (3.50%). Rate on the 364-day note, however, stopped higher at 7.50% (from 7.20% at the previous auction). Buy activities topped market activities at the fixed income secondary market, with yields on treasury bills and bonds, which move in the opposite direction with prices, settling lower at 5.17% and 10.92% (from 5.46% and 10.69% the previous week) each.