FGN Bond Stop Rates Fall as Investors Opt for Better Rates…

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In line with our expectations, DMO sold FGN bonds worth N100 billion at the primary market auction, viz: 5-year, 12.75% FGN APR 2023 worth N30.07 billion, 15-year, 12.50% FGN MAR 2035 paper worth N72.25 billon and 30-year, 12.98% FGN MAR 2050 debt worth N53.74 billion.

Given the high demand, stop rates for all maturities dropped: stop rate for 5-
year, 15-year and 30-year bonds fell to 8.00% (from 9.20%), 11.00% (from 11.70%) and 12.15% (from 12.60%) respectively.

Meanwhile, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated for most maturities tracked.

Specifically, 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 rose by N5.40, N2.52 and N7.78 respectively; their corresponding yields fell to 7.44% (from 8.70%), 9.95% (from 10.41%) and 10.65% (from 11.44%) respectively.

However, the 5-year, 14.50% FGN JUL 2021 paper was flattish at 4.80%.

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, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.13, USD1.14 and USD0.28 respectively; while their corresponding yields moderated to 4.96% (from 5.24%), 8.68% (from 8.82%) and 8.69% (from 8.77%) respectively.

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