FGN Bond Yields Fall for All Maturities Tracked amid Bullish Activity…


In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated for all Maturities tracked amid demand pressure: the 5-year, 14.50% FGN JUL 2021 paper, the 7-year, 13.53% FGN MAR 2025 note, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 bond gained N0.44, N7.18, N3.19 and N3.73 respectively; their corresponding yields
moderated further to 4.69% (from 5.16%),
8.01% (from 9.66%), 11.01% (from 11.61%)
and 11.30% (from 11.70%) respectively in line with our expectations.

Elsewhere, the value of FGN Eurobonds traded at the international capital market appreciated for all maturities tracked.

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 gained USD0.80, USD2.52 and USD3.78; while their corresponding yields fell to 16.33% (from 17.37%), 11.16% (from 11.59%) and 10.69% (from 11.28%) respectively.

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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