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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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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