FGN Bond Prices Remain Soft on Sustained Profit Taking…

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In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment depreciated (and yields rose) across the maturities tracked against the backdrop of strain in financial system liquidity.

Specifically, the 7-year, 13.53% FGN MAR 2025 bond, the 10-year, 16.29% FGN MAR 2027 debt and the the 20-year, 16.25% FGN APR 2037 instrument moderated by N0.74, N1.39 and N0.38 respectively; their corresponding yields rose to 14.73% (from 14.53%), 14.65% (from 14.37%) and 14.60% (from 14.54%) respectively. However, the 5-year, 14.50% FGN JUL 2021 paper gained N0.01 (yield fell to 14.63% from 14.64%).

Elsewhere, the value of the FGN Eurobonds traded at the international capital market fell for most maturities tracked amid renewed profit taking – the 20-year, 7.69% FEB 23, 2038 and the 30-year, 7.62% NOV 28, 2047 bonds gained USD0.72 and USD0.77 respectively; their corresponding yields rose to 8.18% (from 8.10%) and 8.28% (from 8.20%) respectively.

In the new week, against the backdrop of boost in financial system liquidity, we expect FGN bond prices to rally (with corresponding drop in yields) at the OTC market amid expected bullish activity

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