FGN Bond Rates Moves 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 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.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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