Trade activity in the secondary bond market remained modest amid banks’ end-of-month rebalancing. Activity was spread across all tenors.
The February 2027 and Aug 2027 led the activity, accounting for 44% of trades at an average Yield-To-Maturity (YTM) of 20.9%.
Overall, the shorter end of the LCY curve contributed 60% of volumes at an average YTM of 20%, while the belly and tail segments made up the remaining 40%.
This cleared at an average YTM of 21.33%.
Databank Research said it expects trade activity to pick up as expectations for a bond market reopening gain momentum.
This will be supported by the positive macroeconomic signals highlighted in the Monetary Policy Committee’s 124th briefing.
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