FGN Bond Yields Rise for Most Maturities amid Renewed Bearish Activity…


In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment depreciated for most maturities tracked amid renewed bearish activity.

Specifically, the 5-year, 14.50% FGN JUL 2021 bond, the 10-year, 16.29% FGN MAR 2027 debt and the 20- year, 16.25% FGN APR 2037 debt lost N0.34, N2.10 and N3.05 respectively; their corresponding yields increased to 2.99% (from 2.85%), 8.11% (from 7.79%) and 10.07% (from 9.80%) respectively.

However, the 7-year, 13.53% FGN MAR 2025 note gained N0.43 while its corresponding yield moderated to 6.23% (from 6.35%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market appreciated for most maturities tracked in line with our expectation.

The 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.68 and USD1.02 respectively; while their corresponding yields lowered to 8.04% (from 8.12%) and 8.10% (from 8.20%) respectively.

In the new week, we expect the value of FGN Eurobonds prices to depreciate (and yields to rise) as the fear of local currency devaluation dissipate amid ongoing response by CBN to stabilize the exchange rate.

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