FGN Bond Yields Move in Mixed Directions across Maturities Tracked…

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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%)
respectively.

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.