WeekAheadBonds: FGN Bond prices seen increase as yields fall at OTC market

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As FGN Bond Prices Decrease for Most Maturities Tracked amid Bearish Activity…

In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment depreciated (and yields rose) for most maturities tracked amid renewed bearish activity: the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 bond moderated by N0.20 and N0.50 respectively; their corresponding yields increased to 14.58% (from 14.54%) and 14.57% (from 14.50%) respectively.

However, the 5-year, 14.50% FGN JUL 2021 paper rose by N0.03 and its yield fell to 14.82% (from 14.83%); while 7-year, 13.53% FGN MAR 2025 note remained flattish and its yield unchanged at 14.17%.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for most maturities tracked amid renewed bargain hunting activity – the 10-year, 6.75% JAN 28, 2021 paper and the 20-year, 7.69% FEB 23, 2038 gained USD0.01 and USD0.03 respectively; their corresponding yields declined to 4.90% (from 4.92%) and 7.81% (from 7.82%) respectively. However, 30-year, 7.62% NOV 28, 2047 bonds lost N0.22; its corresponding yield rose to 7.99% (from 7.97%).

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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Obodo Ejiroghene Lucky [Chief Economist] Mr. Ejiroghene Obodo is an economist with over 15 years in Journalism, which cuts across Research and Data analysis. Mr Obodo, a graduate of Columbia University, New York City, with a Degree Journalism Graduate School Field Of Study Citi Journalism Seminar Ejiro was the Online Editor at BusinessDay Media, where he oversees the online editorial department. Proir to this Mr. Ejiroghene Obodo, also known as Lucky, served as a Senior Research Analyst at BusinessDay Research and Intelligence Unit. Prior to this, he was an Analyst at the firm. Ejiro has won series of International awards which includes the most coveted awards Citi Journalistic Award for 2013 See his professional profile listed on Bloomberg

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