Nigeria Bond Stop Rates Move in Mixed Directions…

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In the just concluded week, the DMO allotted N170.64 billion worth of bonds; viz N81.76 billion for the 12.50% FGN JAN 2026 and N88.92 billion for the 13.00% FGN JAN 2042.

Stop rates for 26s fell to 11.50% from 11.65% while 42s, new issue, was done at a stop rate of 13.00%.

In the secondary market, investors
were strongly bullish as the value of FGN bonds traded northward for most maturities tracked.

Specifically, the yields of 10-year, 16.29% FGN MAR 2027 paper and 20-year 16.25% FGN
MAR 2037 debt gained N0.35 and N0.76; their corresponding yield fell to 12.11% (from 12.20%), 12.85% (from 12.95%) respectively.

However, the 15-year 12.50% FGN MAR 2035 bond and the 30-year 12.98% FGN MAR 2050 instrument traded flattish at 12.90% and and 13.11% respectively.

Elsewhere, the value of FGN Eurobonds traded at the international capital market appreciated for all maturities tracked on renewed bullish 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 gained USD0.60, USD2.40 and USD3.02 respectively; their corresponding yields decreased to 3.93% (from 4.39%), 8.88% (from 9.19%) and 8.85% (from 9.19%) respectively.

In the new week, we expect the value of FGN Bonds, especially for longer maturities to increase (and yields to fall) as N290 billion FGN 10-Year bond matures in the new week.