FGN Bond Yields Move in Mixed Directions across Maturities Tracked…


In the just concluded week, the value of FGN bonds moved in mixed directions in the
secondary market as investors cherry picked maturities with attractive yields.

Particularly, the 10-year 16.29% FGN MAR 2027 bond and the 20-year 16.25% FGN MAR 2037 paper gained N0.05 and N0.26 respectively; their corresponding yields moderated to 11.56% (from 11.58%) and 12.91% (from 12.94%)

On the flip side, the 5-year, 13.53% FGN APR 2025 paper and the 10-year 13.98% FGN MAR 2028 debt lost N0.38 and N0.31 respectively; their corresponding yields rose to 10.59% (from 10.48%) and 11.62% (from 11.56%) respectively.

Elsewhere, the value of FGN Eurobonds traded at the international capital market appreciated for most maturities tracked; the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.23 and USD0.28 respectively; their corresponding yields fell to 8.08% (from 8.11%) and 8.21% (from 8.24%) respectively.

However, the 10-year, 6.375% JUL 12, 2023 bond lost USD0.27, it corresponding yield rose to 4.06% (from 3.93%).

We note that traders sentiment would be shaped by the T-bills auction result in the course of the new week.

Cowry Research anticpates the 364-day T-bills rate to moderate, hence we expect local OTC bond prices to increase (and yields to decrease) in the coming week.