FGN Bond Rates Moderate for All Maturities Tracked amid Demand Pressure…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment further rose for all maturities tracked amid demand pressure as some short-term instruments’ real returns have become negative.

In particular, the 5-year, 14.50% FGN JUL 2021 paper, the 7-year, 13.53% FGN MAR 2025 bond, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 instrument gained N1.19, N0.01, N0.60 and N1.67 respectively; their corresponding yields further fell to 13.10% (from 13.78%), 13.98% (from 14.07%), 14.09% (from 14.21%) and 14.24% (from 14.48%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market rose for all maturities tracked amid sustained bullish activity – the 10-year, 6.75% JAN 28, 2021, the 20-year, 7.69% FEB 23, 2038 and the 30-year, 7.62% NOV 28, 2047 bonds gained USD0.01, USD1.95 and USD1.90 respectively; their corresponding yields fell to 3.93% (from 3.96%), 7.38% (from 7.57%) and 7.52% (from 7.68%) respectively.

In the new week, against the backdrop of boost in financial system liquidity, we expect FGN bond prices to rally (with corresponding drop in yields) at the OTC market amid expected bullish activity.

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