FGN Bond Yields Moderate for Most Maturities Tracked amid Buy Pressure…

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In the just concluded week, Debt Management Office (DMO) sold bonds worth N29.35 billion, viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N3.80 billion, 13.53% FGN MAR 2025 (7-Yr Re-opening) worth N5.55 billion and 13.98% FGN FEB 2028 (10-Yr Re-opening) worth N20.00 billion respectively.

The 5-year, 7-year and 10-year bonds were auctioned at lower stop rates of 13.50% (from 14.52%), 13.50% (from 14.80%) and 13.50% (from 14.94%) respectively.

Amid lower primary market stop rates, the value of FGN bonds traded at the over-the-counter (OTC) segment gained for most maturities: the 5-year, 14.50% FGN JUL 2021 paper, the 7-year, 13.53% FGN MAR 2025 note and the 10-year, 16.29% FGN MAR 2027 debt gained N1.16, N0.98 and N0.15; their corresponding yields moderated to 14.06% (from 14.67%), 14.13% (from 14.38%) and 14.25% (from 14.29%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market depreciated for most maturities tracked amid renewed sell-offs – the 10-year, 6.75% JAN 28, 2021 debts and the 20-year, 7.69% FEB 23, 2038 note fell by USD0.20 and USD0.45 respectively; their corresponding yields rose to 4.97% (from 4.87%) and 7.79% (from 7.75%) 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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