Nigerian Eurobond Yields Depreciated on renewed Bearish Sentiment…

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

Specifically, the 10-year, 16.29% FGN MAR
2027 instrument, the 15-year 12.50% FGN
MAR 2035, the 20-year 16.25% FGN APR
2037 debt instrument and the 30-year 12.98%
FGN MAR 2050 bond rose by N0.12 to
N120.20 from N120.08, N0.66 to N100.27
(from N99.61), N2.22 to N125.36 (from
N123.14) and N1.05 to N99.88 from N98.83
while their yields declined to 10.72% (from 10.76%), 12.45% (from 12.56%), 12.45% (from 12.73%) and 12.99% (from 13.13%) respectively. 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 0.07 , USD 0.75 and USD 1.07 respectively; while their corresponding yields rose to 8.50% (from 8.39%), 13.42% (from 13.25%) and 12.84% (from 12.62%) 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…