FGN Bond Stop Rate Rises for all Maturities Offered…

Date:

In the just concluded week, the DMO offered via auction N150 billion worth of bonds; viz N50 billion (a piece) for the 16.29% FGN MAR 2027, 12.50% FGN MAR 2035 and 9.80% FGN MAR 2045 re-openings but sold N157.95 billion across the three maturities on offer.

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Stop rates jumped to 12.25% (from 10.50%), 13.34% (11.50%) and 13.85% (from 12.00%) respectively.

Also, the values of FGN bonds traded in the secondary market decreased as yields rose for most maturities tracked.

Specifically, the 5-year, 14.50% FGN JUL 2021 and 7-year, 13.53% FGN APR 2025 lost N0.34 and N0.01 respectively; their corresponding yields rose to 3.01% (from 2.54%) and 11.03% (from 11.02%) respectively.

However, the 10-year 16.29% FGN MAR 2027 gained N0.16, its yield decreased to 12.25% (from 12.30%); while the 20-year, 16.25% FGN MAR 2037 closed flat at a yield of 13.29%.

Meanwhile, the value of FGN Eurobonds traded at the international capital market fell for all maturities tracked; the 10-year, 6.375% JUL 12, 2023 paper, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt lost USD0.18, USD0.13 and USD0.44 respectively; their corresponding yields increased to 2.95% (from 2.90%), 7.39% (from 7.38%) and 7.52% (from 7.49%) respectively.

In the new week, we expect local OTC bond prices to moderate (and yields to increase) as prospective investors demand higher rates in tandem with rates in the primary market.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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