Bond Yields 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: the 5-year, 14.50% FGN JUL 2021 paper and the 10-year, 16.29% FGN MAR 2027 debt increased by N0.10 and N0.76; their corresponding yields moderated to 14.67% (from 14.73%) and14.29% (from 14.44%) respectively.

However, the 7-year, 13.53% FGN MAR 2025 note and the 20-year, 16.25% FGN APR 2037 bond depreciated by N0.30 and N0.30 while their corresponding yield rose to 14.38% (from 14.30%) and 14.13% (from 14.09%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for most maturities tracked amid sustained demand pressure – the 20-year, 7.69% FEB 23, 2038 note and 30-year, 7.62% NOV 28, 2047 bond rose by USD0.83 and USD0.64 respectively; their corresponding yields moderated to 7.75% (from 7.83%) and 7.89% (from 7.95%) respectively;

however, the 10-year, 6.75% JAN 28, 2021 debts fell by USD0.11; its yield rose to 4.87% (from 4.83%). In the new week, Debt Management Office will issue bonds worth N100.00 billion, viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N40 billion, 13.53% FGN MAR 2025 (7-Yr Re-opening) worth N40 billion and 13.98% FGN FEB 2028 (10-Yr Re-opening) worth N20 billion respectively. We expect the bonds to be issued at lower stop rates amid demand pressure.

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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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