FGN Bond Yields Fall for Most Maturities Tracked amid Sustained Buy Pressure…


In the just concluded week, Debt Management Office (DMO) allotted bonds worth N150 billion, viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N1.50 billion, 13.53% FGN MAR 2025 (7-Yr Re-opening) worth N12.25 billion and 13.98% FGN FEB 2028 (10-Yr Re-opening) worth N136.25 billion respectively.

The 5-year, 7-year and 10-year bonds were auctioned at lower stop rates of 14.52% (from 15.20%), 14.80% (from 15.25%) and 14.94% (from 15.30%) respectively.

Amid lower primary market stop rates, the value of FGN bonds traded at the over-the-counter (OTC) segment rose for most maturities tracked: the 5-year, 14.50% FGN JUL 2021 paper and the 7-year, 13.53% FGN MAR 2025 note appreciated by N0.01 and N0.12; their corresponding yields fell to 15.15% (from 15.16%) and 14.65% (from 14.68%) respectively; however, 10-year, 16.29% FGN MAR 2027 debt depreciated by N0.29 and its yield rose to 14.73% (from 14.67%).

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for all maturities tracked amid sustained buy pressure – the 10-year, 6.75% JAN 28, 2021 paper and 20-year, 7.69% FEB 23, 2038 note rose by USD2.22 and USD4.33; their corresponding yields moderated to 5.17% (from 5.17%) and 5.40% (from 5.40%) respectively.
In the new week, we expect FGN bond prices to increase (with corresponding fall in yields) at the OTC market amid expected ease in financial system liquidity.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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