FGN Bond Yields Moderate for Most Maturities amid Sell Pressure…

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

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 prices moderated by N5.01, N7.86 and N7.50 respectively, their corresponding yields climbed to 5.96% (from 4.96%), 7.91% (from 6.75%) and 9.84% (from 9.20%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for all maturities tracked amid sustained 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 USD0.07, USD2.67 and USD2.26 respectively; while their corresponding yields fell to 3.91% (from 4.24%), 8.23% (from 8.53%) and 8.27% (from 8.49%) respectively.

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 as N40 billion worth of FGN bond matures.

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