OTC FGN Eurobond Yields Rise amid Declining Crude Oil Prices…


In the just concluded week, the value of the FGN Eurobonds traded at the international capital market tanked for all maturities tracked amid decline in global crude oil prices and Nigeria’s external reserves – 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 USD0.61,USD1.32 and USD1.85 respectively; their corresponding yields rose to 6.11% (from 5.81%), 7.53% (from 7.18%) and 8.60% (from 8.28%) respectively.

On the local scene, the value of FGN bonds traded at the over-the-counter (OTC) segment moved in different directions across maturities tracked: the 10-year, 16.39% FGN JAN 2022 debt and the 7-year, 16.00% FGN JUN 2019 paper gained N0.38 and N0.06 respectively; their corresponding yields fell to 14.80% (from 14.95%) and 13.85% (from 14.02%) respectively.

However, the 20-year, 10% FGN JULY 2030 debt and the 5-year, 14.50% FGN JUL 2021 note lost N0.49 and N0.02; their corresponding yields rose to 15.75% (from 15.62%) and 15.44% (from 15.42%).

In the new week, against the backdrop of increased financial system liquidity, we expect higher bond prices at
the OTC bonds market amid bargain hunting opportunties..


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