FGN Bond Yields Fall amid Renewed Bullish Activity…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment increased for most maturities tracked; the 5-year, 14.50% FGN JUL 2021 paper, the 7-year, 13.53% FGN MAR 2025 bond and the 20-year, 16.25% FGN APR 2037 instrument gained by N0.19, N0.74 and N1.15 respectively and their corresponding yields fell to 14.40% (from 14.52%), 13.85% (from 14.05%) and 14.30% (from 14.46%) respectively.

However, the 10-year, 16.29% FGN MAR 2027 debt lost N0.40 and its corresponding yield rose to 14.19% (from 14.11%).

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 USD0.13, USD1.21 and USD1.53 respectively; their corresponding yields moderated to 4.28% (from 4.40%), 7.72% (from 7.85%) and 7.96% (from 8.10%).

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

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