FGN Bonds Yields Fall on Hint of Fewer Bonds Auction in the Coming Week…

0

In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC)
segment further appreciated for all maturities tracked amid sustained demand and signal by
Debt Management Office to auction fewer bonds in the coming week.

The 5-year, 14.50% FGN JUL 2021 bond, 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 paper gained N0.01, N0.51, N6.31 and
N28.46 respectively; their corresponding yields fell to 1.55% (from 1.82%), 3.81% (from 3.94%), 4.76% (from 5.64%) and 6.31% (from 8.17%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market depreciated for all maturities tracked on renewed bearish activity.

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 USD0.03, USD3.21 and USD3.34 respectively; while their
corresponding yields rose to 3.79% (from 3.85%), 8.39% (from 8.03%) and 8.32% (from 7.99%) respectively.

In the new week, Debt Management Office will issue bonds worth N30 billion, viz: 12.50% FGN APR 2035 (15-Yr re-opening) worth N15 billion and 9.80% FGN JUL 2045 (25-Yr re-opening) worth N15 billion respectively.

We expect the bonds stop rates to moderate further amid fewer bonds issuance.

This site uses Akismet to reduce spam. Learn how your comment data is processed.