FGN Eurobond Yields Depreciated on renewed Bearish Sentiment…..

Read audio

In the just concluded week, investors were
mostly bullish on maturities tracked in the
secondary market as the value the FGN bonds
traded decreased for most of the maturities

Specifically, the 10-year, 16.29% FGN
MAR 2027 instrument, the 15-year 12.50%
FGN MAR 2035 and the 30-year 12.98% FGN
MAR 2050 bond instruments fell by N0.07 to
N120.08 from N120.15, N0.25 to N99.61
(from N99.86) and N0.13 to N98.83 from
N98.96 while their yields rose to 10.76% (from
10.70%), 12.56% (from 12.51%) and 13.13%
(from 13.11%) respectively.

On the other hand, the 20-year 16.25% FGN APR 2037 debt instrument rose by N0.06 to N123.14 (from N123.08) and while the corresponding yields declined to and 12.73% (from 12.74%).

Elsewhere, the value of FGN Eurobonds traded at the international capital market depreciated for all the maturities tracked on renewed 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 USD 0.75 , USD 5.34 and USD 4.35 respectively; while their corresponding yields rose to 8.39% (from 7.60%), 13.25% (from 12.17%) and 12.62% (from 11.80%) respectively.

In the new week, we expect to see increased bearish activity in local FGN bonds space as FGN eurobonds yields appear to be relatively high