OTC FGN Bond Yields Rise amid Sustained Bearish Activity…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment fell for all maturities tracked amid sustained sell pressure: the 20-year, 10% FGN JULY 2030 debt, 10-year, 16.39% FGN JAN 2022 debt, 7-year, 16.00% FGN JUN 2019 debt and the 5-year, 14.50% FGN JUL 2021 debt lost N0.45, N0.19, N0.16 and N0.20 respectively; their corresponding yields rose to
15.73% (from 15.62%), 15.01% (from
14.94%), 14.37% (from 14.16%) and 15.33%
(from 15.23%) respectively.

Meanwhile, the value of the FGN Eurobonds traded on the LSE tanked for all maturities tracked amid bearish activity – the 10-year, 6.75% JAN 28, 2021 bond, the 10-year, 6.38% JUL 12, 2023 note and the 15-year, 6.50% NOV 28, 2027 paper fell by USD0.37, USD0.59 and USD0.64 respectively; their corresponding yields rose to 5.37% (from
5.21%), 6.57% (from 6.42%) and 7.77% (from 7.66%) 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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