FGN Bond Yields Moves in Mixed Directions Across Maturities…


In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment went in mixed directions across maturities tracked.

Specifically, the 5-year, 14.50% FGN JUL 2021 paper and the the 7-year, 13.53% FGN MAR 2025 bond lost N0.02 and N1.79 respectively; their corresponding yields rose to 14.44% (from 14.42%) and 14.34% (from 13.85%) respectively.

However, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 gained N0.01 and N0.47 respectively; their corresponding yields fell to 14.25% (from 14.26%) and 14.44% (from 14.51%) respectively.

Elsewhere, the value of the FGN Eurobonds traded at the international capital market fell 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 USD0.20, USD1.22 and USD1.26 respectively; their corresponding yields rose to 4.20% (from 4.09%), 7.46% (from 7.34%) and 7.69% (from 7.58%) respectively.

In the new week, against the backdrop of ease 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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