WeekAheadBond: Nigeria seen issue bond worth N100 bln as fixed income assets pressure worsens

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BOND MARKET: FGN Bond Prices Fall for Most Maturities Tracked amid Sell Pressure…
In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment depreciated (and yields rose) for most maturities tracked amid renewed sell pressure: 7-year, 13.53% FGN MAR 2025 note, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 bond fell by N1.22, N0.06 and N0.74 respectively; their corresponding yields rose to 14.50% (from 14.17%), 14.27% (from 14.26%) and 14.29% (from 14.19%) respectively. However, 5-year, 14.50% FGN JUL 2021 paper gained N0.80; its corresponding yield declined to 14.00% (from 14.44%). Elsewhere, the value of the FGN Eurobonds traded at the international capital market further depreciated for all maturities tracked amid sustained profit taking activity – the 10-year, 6.75% JAN 28, 2021 paper, the 20-year, 7.69% FEB 23, 2038 and the 30-year, 7.62% NOV 28, 2047 bonds lost N0.03, USD0.25 and USD0.26 respectively; their corresponding yields increased to 4.93% (from 4.92%), 8.01% (from 7.98%) and 8.22% (from 8.20%) 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 N35 billion, FGN APR 2029 (10-Yr Re-opening) worth N35 billion and FGN APR 2049 (30-Yr Re-opening) worth N30 billion respectively. We expect the bonds to be issued at lower stop rates amid sustained demand pressure on fixed income assets.

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