THIS WEEK: The bond market may be in a 3rd wave

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This week, the NGSEO&G Index (alias Quasi Bond Market Index) had a bearish acceleration gap which signifies that the index may be within a 3rd wave. If so, we should expect a strong bearish downward trend in the coming trading days.

Potentially, we should expect the Nigerian Local Bond Market to continue it’s recent new bearish trend thereby expect yield(s) to rise further.

Thus, we continue to maintain our money market portfolio allocation esp. following the continuing sell-off in US treasuries as global investors continue to take cash position by investing in the dollar.