Nigeria Bond Market Yields Rise Sharply for the 7-year Bond to 10.23% from 6.99%…


In line with our expectation, values of FGN bonds traded at the over-the-counter (OTC) segment depreciated for most maturities tracked amid renewed bearish activity: the 7-year, 13.53% FGN MAR 2025 note and the 10-year, 16.29% FGN MAR 2027 debt lost N14.75 and N3.94 respectively even as their corresponding yields rose sharply to 10.23% (from 6.99%) and 10.60% (from 9.94%) respectively.

However, the 5-year, 14.50% FGN JUL 2021 paper gained N0.37, its corresponding yield fell to 6.08%
(from 6.45%); while the 20-year, 16.25% FGN APR 2037 bond yield closed flat at 10.62%.

Elsewhere, the value of FGN Eurobonds traded at the international capital market depreciated for all maturities tracked amid sell pressure.

The 10-year, 6.75% JAN 28, 2021 bond, 20-year, 7.69% FEB 23, 2038 paper and 30-year, 7.62% NOV
28, 2047 debt shed USD0.03, USD0.03 and USD0.60 while their corresponding yields rose to 3.85% (from
3.81%), 8.14% (from 8.13%) and 8.28% (from 8.25%).

In the new week, we expect OTC bond prices to appreciate (and yields to moderate) against the backdrop of expected boost in financial system liquidity.

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