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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