FGN Bond Yields Moves in Mixed Directions across Maturities…


In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment moved in mixed directions across maturities tracked amid bearish activity.

Specifically, the 7-year, 13.53% FGN MAR 2025 note yield was flattish at 4.97%. The 10-year, 16.29% FGN MAR 2027 debt increased by N8.27 and its corresponding yield moderated to 6.75% (from 8.00%).

However the 20-year, 16.25% FGN APR 2037 bond decreased by N0.76 and its corresponding yield rose to 9.20%
(from 9.14%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked amid sustained demand pressure.

The 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.36 and USD0.27 respectively; while their corresponding yields fell to 8.53% (from 8.57%) and 8.49% (from 8.52%) respectively.

However, the 10-year, 6.75% JAN 28, 2021 bond, decreased by USD0.02, its corresponding yield rose to 4.24% (from 4.23%).

In the new week, we expect OTC bond prices to appreciate (and yields to moderate), amid increasing demand for fixed income securities with relatively higher yield, against the backdrop of ample financial system liquidity.

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