FGN Bond Yield Move in Mixed Directions For Most Maturities Tracked…


In the just concluded week, sentiment was
mixed in the market as FGN yields moved in
different directions across maturities.

Specifically, bonds traded at the short end of the curve were bullish as the 5-year 13.53% FGN APR 2025 and 10-year 13.98% FGN MAR 2028 gained N0.15 and N0.04 respectively; their corresponding yields fell to 11.61%(from 11.67%) and 12.35% (from 12.36%).

However, 10-year 16.29% FGN MAR 2027 and the 20-year, 16.25% FGN MAR 2037 lost N0.75 and N3.22 respectively while their yields expanded to 12.42%(from 12.25%) and 13.18%(from 12.76%) respectively.

Notably, the N400 billion, 5-year bond issued in 2016 matured on Thursday, July 15 2021. Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for all maturities tracked; the 10-year, 6.375% JUL 12, 2023, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.11, USD0.74 and USD0.88 respectively; their corresponding yields declined to 2.80% (2.84%), 7.38% (from 7.46%) and 7.54% (from 7.61%) respectively.

In the new week, the DMO will auction N150 billion worth of bonds; viz: N50 billion (a piece) for the 13.98% FGN FEB 2028, 12.40% FGN MAR 2036 and 12.98% FGN MAR 2050 Re-Openings.

Hence, we expect the stop rates to moderate – mirroring the drop in the money market rate for 364-day bill.