In line with our expectations, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated further 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 appreciated by N3.80, N3.97 and N0.01 respectively; their corresponding yields fell further to 6.31% (from 7.14%), 8.12% (from 8.76%) and 10.04% (from 10.05%) respectively.
However, the 5-year, 14.50% FGN JUL 2021 paper, depreciated by N0.53 (yield rose to 4.48% from 4.16%). Meanwhile, the value of FGN Eurobonds traded at the international capital market appreciated further for all maturities tracked amid demand pressure.
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 USD0.16, USD0.35 and USD0.99 respectively; while their corresponding yields moderated to 4.57%
(from 4.92%), 8.63% (from 8.67%) and 8.57% (from 8.68%) 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.