FGN Bond Yields Move Northwards for Most Maturities Tracked…


In the just concluded week, the values of FGN bonds traded at the secondary market fell for most maturities tracked.

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 paper lost N0.26, N2.42 and N23.86 respectively; their corresponding yields rose to 0.15% (from 0.17%), 3.90% (from 3.61%) and 6.31% (from 5.02%) respectively.

However, the 7-year, 13.53% FGN MAR 2025
note appreciated by N2.11; its corresponding yield fell to 1.26% (from 1.70%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose 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 USD2.35 and USD2.77 respectively; while their corresponding yields fell to 7.06% (from 7.29%) and 7.18% (from 7.41%) respectively.

However, the 10-year, 6.75% JAN 28, 2021 bond lost USD0.07, the yield rose to 3.50% (from 3.43%).

In the new week, we expect local OTC bond prices to appreciate (and yields to moderate) amid expected boost in financial system liquidity.

Also, we expect investors to further patronise the Eurobond market amid relatively higher yields.