FGN Bond Yields Collapse Below Double Digits for Most Maturities Tracked…


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

Specifically, the 5-year, 14.50% FGN JUL 2021 paper, the 7-year, 13.53% FGN MAR 2025 note and the 20-year, 16.25% FGN APR 2037 bond appreciated by N0.07, N1.13 and N1.46 respectively; their corresponding yields fell further to 3.11% (from 3.37%), 5.67% (from 5.92%) and 9.91% (from 10.03%) respectively.

However, the 10-year, 16.29% FGN MAR 2027 debt moderated by N0.51 and its yield rose to 8.18%(from 8.12%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for all maturities tracked amid renewed 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 USD0.14, USD0.55 and USD0.63 respectively; while their corresponding yields fell to 4.70% (from 5.02%), 8.84% (from 8.90%) and 8.79% (from 8.86%) respectively.

In the new week, Debt Management Office will issue bonds worth N130 billion, viz: 12.50% FGN APR 2026 (10- Yr Re-opening) worth N25 billion, 12.50% FGN APR 2035 (15-Yr Re-opening) worth N35 billion, FGN JUL 2045(25-Yr New Issue) worth N35 billion and 12.98% FGN APR 2050 (30-Yr Re-opening) worth N35 billion respectively. We expect the bonds stop rates to moderate amid demand pressure.

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