FGN Bonds Yields Remain Unchanged for Most Maturities Tracked…

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In the just concluded week, the DMO allotted N100.00 billion worth of bonds; viz N14.18 billion for the 12.50% FGN JAN 2026 and N84.61 billion for the 16.25% FGN APR 2037.

Stop rates for 26s stood flattish at 11.95% while 37s stop rate rose to 13.10% from 12.95%.

The value of FGN bonds traded mostly in line with 26s maturities as yields largely remain unchanged.

Specifically, the 5-year, 13.53% FGN APR 2025 paper, the 10-year 13.98% FGN MAR 2028 debt and the 10-year 16.29% FGN MAR 2027 bond yields were flattish at 10.59%, 12.23% and 12.44% respectively.

However, the 20- year 16.25% FGN MAR 2037 debt lost N1.52; its corresponding yield rose to 13.05% (from 12.86%) amid renewed sell sentiment.

Elsewhere, the value of FGN Eurobonds traded at the international capital market depreciated for all maturities tracked on sustained bearish sentiment; the 10-year, 6.375% JUL 12, 2023 bond, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt lost USD0.08, USD1.51 and USD1.51 respectively; their corresponding yields rose to 4.41% (from 4.38%), 8.70% (from 8.51%) and 8.76% (from 8.60%) respectively.

In the new week, we expect the value of FGN Bonds to fall (and yields to rise) as investors subscribe to the higher yielding N250 billion worth of 10-year 12.80% Sukuk bonds.