FGN Bond Prices Decrease for Most Maturities Tracked amid Bearish Activity…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment depreciated (and yields increased) for most maturities tracked amid sustained bearish activity: the 5-year, 14.50% FGN JUL 2021 paper and the 20-year, 16.25% FGN APR 2037 bond tanked by N0.07 and N0.77 respectively; their corresponding yields increased to 14.94% (from 14.90%) and 14.56% (from 14.45%) respectively; however, the 10-year, 16.29% FGN MAR 2027 debt rose by N1.04, and its corresponding yield fell to 14.47% (from 14.49%) while 7-year, 13.53% FGN MAR 2025 note was flattish, and its corresponding yield stood at 14.25%.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for all maturities tracked amid bargain hunting activity – the 10-year, 6.75% JAN 28, 2021 paper, the 20-year, 7.69% FEB 23, 2038 and 30-year, 7.62% NOV 28, 2047 bonds gained USD0.04, USD0.80 and USD0.88 respectively; their corresponding yields fell to 4.92% (from 4.96%), 7.79% (from 7.87%) and 7.90% (from 7.98%) respectively.

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, FGN APR 2029 (10-Yr New Issue) worth N40 billion and FGN APR 2049 (30-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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