Namibian Inductive Daily Bond Yield Report (21 November 2022)

HEI Fixed Income Market Commentary

• As the price of Brent crude traded at prices last seen in February this year after news reports that OPEC+, the petroleum consortium, could discuss a supply increase of 500,000 barrels during the next meeting.
• While the Namibian Stock Exchange (NSX) declined by 0.97% yesterday, bond yields indicated some positive sentiments as yield curves displayed an upward trajectory. Spreads between Namibia’s yields and South Africa’s yields are extremely volatile as an aftermath of S&P Global’s positive rating outlook on South African local and foreign debt.
• In South Africa, the yield curves are continuing to decline drastically as market forces are causing investors to rearrange their portfolio’s holdings on Fixed Income securities

Table 1. Namibia Government Bonds

Bonds	Coupon	Maturity	YTM (%)	YTM (%)	YTM (%)	DTDΔ	Prices
			04-Nov-22	18-Nov-22	21-Nov-22	(bps)	21-Nov-22
GC23	8.85	15-Oct-23	8.73	8.78	8.81	2.32	100.02
GC24	10.5	15-Oct-24	8.39	8.12	8.11	-1.20	104.13
GC25	8.5	15-Apr-25	8.75	8.86	8.85	-1.40	99.25
GC26	8.5	15-Apr-26	8.75	9.25	9.24	-1.30	97.86
GC27	8	15-Jan-27	9.56	9.34	9.33	-1.20	95.48
GC28	8.5	15-Oct-28	11.17	10.90	10.90	-0.20	89.74
GC30	8	15-Jan-30	11.54	11.21	11.24	2.65	84.36
GC32	9	15-Apr-32	11.89	11.56	11.59	2.76	85.37
GC35	9.5	15-Jul-35	12.96	12.96	13.00	3.36	78.53
GC37	9.5	15-Jul-37	13.09	13.23	13.26	3.24	75.93
GC40	9.8	15-Oct-40	13.22	12.97	13.01	3.51	77.89
GC43	10	15-Jul-43	14.21	14.32	14.30	-2.25	71.63
GC45	9.85	15-Jul-45	14.21	14.40	14.39	248.82	69.77
GC48	10	15-Oct-48	14.58	14.76	14.78	1.57	68.91
GC50	10.25	15-Jul-50	14.75	14.84	14.85	1.57	69.56

Source: BoN & HEI Research

Figure 1.  Namibia Bond Yield: 04-Nov-2022 vs. 21-Nov-2022

Figure 1. South African Bond Yields: 01-Nov-2022 vs. 18-Nov-2022