FGN Bond Stop Rates Slide on Sustained Buy Pressure…

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In line with our expectations, DMO sold FGN bonds worth N45.00 billion at the primary market auction, viz: 15-year, 12.50% FGN MAR 2035 paper worth N20.00 billon and 25-year, 9.80% FGN JUL 2045 bond worth N25.00 billion respectively.

Given the limited number of bonds
auctioned, stop rates fell for all maturities amid relatively high demand: stop rate for 15-year and 25-year bonds fell to 4.97% (from 8.52%) and 6.00% (from 8.90%) respectively.

The values of FGN bonds traded at the over-the-counter (OTC) segment further appreciated for all maturities tracked amid the crash in stop rates.

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 N0.35, N2.58, N10.88 and N23.49 respectively; their corresponding yields fell to 0.80% (from 1.55%), 3.26% (from 3.81%), 3.34% (from 4.76%) and 5.04% (from 6.31%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market depreciated for all maturities tracked on sustained 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 USD0.23, USD2.09 and USD1.83 respectively; while their corresponding yields rose to 4.47% (from 3.79%), 8.64% (from 8.39%) and 8.50% (from 8.32%) respectively.

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