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 10-year, 16.29% FGN MAR 2027 debt fell by N0.22 and N0.52 respectively; their corresponding yields rose to 15.71% (from 15.59%) and 15.14% (from 15.04%) respectively.

However, the 7-year, 13.53% FGN MAR 2025 note and 20-year, 16.25% FGN APR 2037 bond rose by N0.05 and N0.44 respectively; their corresponding yields moderated to 15.35% (from 15.36%) and 15.17% (from 15.24%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market also appreciated for most maturities tracked amid sustained buy pressure – the 10-year, 6.75% JAN 28, 2021 paper and 20-year, 7.69% FEB 23, 2038 note gained USD0.94 and USD0.71; their corresponding yields fell to 6.23% (from 6.48%) and 5.72% (from 5.95%) respectively.

However, the 30-year, 7.62% NOV 28, 2047 paper fell by USD0.23; and its corresponding yield rose to 6.43% (from 5.49%). In the new week, Debt Management Office will issue bonds worth N150.00 billion viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N50 billion, 13.53% FGN MAR 2025 (7-Yr Re-opening) worth N50 billion and 13.98% FGN FEB 2028 (10-Yr Re-opening) worth N50 billion respectively.

We expect the bonds to be issued at higher stop rates, given the rising inflationary pressure in the near-term.

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