OTC FGN Bonds Move in Mixed Directions as 20 Year Yield Falls to 15.24%…

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In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment moved in mixed directions across maturities tracked: the 5-year, 14.50% FGN JUL 2021 paper and 10-year, 16.29% FGN MAR 2027 debt tanked by N0.20 and N0.21 respectively; their corresponding yields rose to 15.59% (from 15.47%) and 15.55% (from 15.50%) respectively.

However, the 7-year, 13.53% FGN MAR 2025 note and 20-year, 16.25% FGN APR 2037 bond appreciated by N0.17 and N1.89; their corresponding yields fell to 15.54% (from 15.58%) and 15.24% (from 15.54%).

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for most maturities tracked amid renewed bargain hunting – the 10-year, 6.75% JAN 28, 2021 paper and 20-year, 7.69% FEB 23, 2038 note gained N1.14 and N0.61; their corresponding yields fell to 7.20% (from 7.50%) and 6.49% (from 6.69%) respectively. However, the 30-year, 7.62% NOV 28, 2047 paper moderated by USD0.03 as its yield rose to 7.12% (from 6.98%).

In the new week, against the backdrop of anticipated liquidity boost, we expect FGN bond prices to increase (with corresponding fall in yields) at the OTC market amid likely bargain hunting.

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