In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment moved in different directions across maturities tracked.
Specifically, the 5-year, 14.50% FGN JUL 2021 paper and the 20-year, 16.25% FGN APR 2037 instrument lost N0.42 and N0.70 respectively; their corresponding yields rose to 13.33% (from 13.10%) and 14.34% (from 14.24%) respectively.
On the flip side, the 7-year, 13.53% FGN MAR 2025 bond and the 10-year, 16.29% FGN MAR 2027 debt gained N0.78 and N0.38 respectively; their corresponding yields fell 13.77% (from 13.98%) and 14.01% (from 14.09%) respectively.
Elsewhere, the value of the FGN Eurobonds traded at the international capital market moderated for all maturities tracked amid renewed bearish 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 lost USD0.22, USD1.48 and USD1.75 respectively; their corresponding yields fell to 4.05% (from 3.93%), 7.52% (from 7.38%) and 7.67% (from 7.52%) 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 financial system liquidity ease.