This week, we at Bourse review both the local and select international fixed income market performance thus far for 2019. The local market remained subdued despite the promise of new offerings for investors, while the international bond investors have experienced positive returns for 2019. We take a closer look at the main drivers and the impact for the investors.
Local Fixed Income Market The Government of the Republic of Trinidad and Tobago (GORTT) Treasury Yield Curve remained fairly stable year-to-date (YTD), with short-term yields marginally higher while longer-term yields have trended down. The yield on one-year GORTT bonds increased to 2.90 per cent in August 2019 from 2.75 per cent in December 2018. Conversely, the 30-year GORTT yield fell over the same period to 6.18 per cent in August 2019 from 6.31 per cent in December 2018. Investors continue to bemoan the lack of new public bond issues coming to market, while secondary trading activity has also been subdued.