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.