FGN Bond Yields Move in Mixed Directions across Maturities Tracked…

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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 as investors cherry-picked yields.

Further breakdown showed that the 7-
year, 13.53% FGN MAR 2025 note, the 10-year, 16.29% FGN MAR 2027 debt gained N1.61 and N0.51 respectively; their corresponding yields fell to 5.16% and 7.72% respectively.

However, the 5-year, 14.50% FGN JUL 2021 bond and the 20-year, 16.25% FGN APR 2037 debt lost N0.30 and N0.03 respectively; their corresponding yields rose to 2.41% (from 2.34%) and 9.91% (from 9.90%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market depreciated further for all maturities tracked as Naira depreciated against USD in most market segments.

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 lost USD0.13, USD1.04 and USD0.73 respectively; while their corresponding yields increased to 4.54% (from 4.31%), 8.21% (from 8.10%) and 8.27% (from 8.19%) respectively.

In the new week, Debt Management Office will issue bonds worth N145 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 re-opening) worth N40 billion and 12.98% FGN APR 2050 (30-Yr Re-opening) worth N40 billion respectively. We expect the bonds stop rates to moderate further amid demand pressure.

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