FGN Bond Yields Rise for most Maturities Tracked amid Renewed Bearish Activity…


In line with our expectations, the values of FGN bonds traded at the over-the-counter (OTC) segment moderated for most maturities tracked.

Specifically, 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 lost N0.93, N0.28 and N4.15 respectively; their corresponding yields rose to 2.38% (from 2.24%) and 3.66% (from 3.65%) and 5.10% (from 4.90%) respectively.

However, the 5-year, 14.50% FGN JUL 2021 bond appreciated by N0.04; its corresponding yield fell to 0.18% (from 0.49%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market appreciated for most maturities tracked on sustained bullish activity.

The 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD2.92 and USD2.37 respectively; while their corresponding yields fell to 7.70% (from 8.02%) and 7.74% (from 7.95%) respectively.

However, the 10-year, 6.75% JAN 28, 2021 bond lost USD0.09; its corresponding yield rose to 3.47% (from 3.35%).

In the new week, Debt Management Office will issue bonds worth N30 billion, viz: 12.50% FGN APR 2035 (15- Yr re-opening) worth N40 billion and 9.80% FGN JUL 2045 (25-Yr re-opening) worth N40 billion respectively.

We expect the bonds stop rates to moderate further amid relatively low volume of bonds issuance.

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