OTC FGN Bonds Move in Mixed Directions across Maturities Tracked…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment moved in mixed directions across maturities tracked: the 5-year, 14.50% FGN JUL 2021 paper and 20-year, 16.25% FGN APR 2037 bond tanked by N0.06 and N0.89 respectively; their corresponding yields rose to 15.63% (from 15.59%) and 15.38% (from 15.24%) respectively.

However, the 7-year, 13.53% FGN MAR 2025 note and 10-year, 16.29% FGN MAR 2027 debt appreciated by N0.49 and N0.80; their corresponding yields fell to 15.41% (from 15.54%) and 15.38% (from 15.55%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for all maturities tracked amid sustained bargain hunting – the 10-year, 6.75% JAN 28, 2021 paper, 20-year, 7.69% FEB 23, 2038 note and 30-year, 7.62% NOV 28, 2047 paper gained USD2.22, USD1.23 and USD0.17; their corresponding yields fell to 6.61% (from 7.20%), 6.09% (from 6.49%) and 6.54% (from 7.12%) respectively.

In the new week, against the backdrop of anticipated liquidity boost, we expect FGN bond prices to increase (with corresponding fall in yields) at the OTC market amid likely bargain hunting.

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