FGN Bond Yields Moved in Mixed Directions; Investors Scramble for Longer 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.

Specifically, the 5-year, 14.50% FGN JUL 2021 bond and the 7-year, 13.53% FGN MAR 2025 note moderated by N0.57 and N2.35 respectively, their corresponding yields climbed to 3.17% (from 2.81%) and 6.44% (from 5.96%) respectively.

However, the 10-year, 16.29% FGN MAR 2027
debt and the 20-year, 16.25% FGN APR 2037
debt gained N0.45 and N4.69 respectively, their corresponding yields fell to 7.82% (from 7.91%) and 9.43% (from 9.84%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for all maturities tracked on sustained bullish run.

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, USD3.40 and USD3.20 respectively; while their corresponding yields fell to 3.63% (from 3.91%), 7.85% (from 8.23%) and 7.96% (from 8.27%) respectively.

In the new week, Debt Management Office will issue bonds worth N150 billion, viz: 12.50% FGN APR 2026 (10- Yr re-opening) worth N25 billion, 12.50% FGN APR 2035 (15-Yr re-opening) worth N40 billion, FGN JUL 2045(25-Yr New Issue) worth N45 billion and 12.98% FGN APR 2050 (30-Yr Re-opening) worth N40 billion respectively. We expect the bonds stop rates to moderate amid demand pressure.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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