FGN Bond Yields Depreciate for Most Maturities on Renewed Sell Pressure…


In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment depreciated for most maturities tracked amid renewed sell pressure.

Specifically, the 10- year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 bond fell by N1.76 and N0.12 respectively; their corresponding
yields rose to 10.41% (from 10.11%) and
11.44% (from 11.43%) respectively.

However, the 5-year, 14.50% FGN JUL 2021 paper gained N0.26 while its yield moderated to 4.90% (from 5.26%).

The 7-year, 13.53% FGN MAR 2025 note was flattish at 8.70%.

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

The 10-year, 6.75% JAN 28, 2021 bond and the 20-year, 7.69% FEB 23, 2038 paper gained USD0.51 and USD0.32 respectively; while their corresponding yields moderated to 5.24% (from 6.10%) and 8.82% (from 8.85%) respectively.

However, the 30- year, 7.62% NOV 28, 2047 debt lost USD0.08, its corresponding yield rose to 8.77% (from 8.76%). 17.00% 14.00% 11.00% 8.00% 5.00% 2.00% OTC Bond Yields (MTM)

In the new week, Debt Management Office will issue bonds worth N150.00 billion, viz: 12.75% FGN APR 2023 (5-Yr Re-opening) worth N40 billion, 12.50% FGN APR 2035 (15-Yr Re-opening) worth N50 billion and 12.98% FGN APR 2050 (30-Yr Re-opening) worth N60 billion respectively.

We expect the bonds stop rates to moderate as investors gun for relatively high yields.

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