FGN Bond Rates Fall for All Maturities Tracked on Increased Demand…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment fell for all maturities tracked in line with our expectation.

Amid increased demand, 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 N0.99, N0.88, N1.30 and N1.96 respectively; their corresponding yields rose to 12.75% (from 13.33%),13.55% (from 13.77%), 13.75% (from 14.01%) and 14.07% (from 14.34%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market increased for all maturities tracked amid renewed 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, USD0.68 and USD0.85 respectively; their corresponding yields rose to 4.01% (from 4.05%), 7.46% (from 7.52%) and 7.59% (from 7.67%) respectively.

In the new week, Debt Management Office will issue bonds worth N145.00 billion, viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N40 billion, FGN APR 2029 (10-Yr Re-opening) worth N50 billion and FGN APR 2049 (30-Yr Re-opening) worth N55 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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