Nigerian Bond Yields Decline as Investors Remain Bullish…

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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 Declined for all the maturities tracked
except the 15-year 12.50% FGN MAR 2035,
which rose by N0.08 to N100.35 ( from
N100.27) while it yield declined to 12.44%
(from 12.45%).

Specifically, the 10-year, 16.29% FGN MAR 2027 instrument, the 20-year 16.25% FGN APR 2037 debt instrument and the 30-year 12.98% FGN MAR 2050 bond declined by N0.12 to N120.08 from N120.20,
N0.12 to N125.24 (from N125.36) and N1.19 to N98.69 from N98.88 while their yields rose to 10.73% (from 10.72%), 12.46% (from 12.45%) and 13.15% (from 12.99%) 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 0.29 , USD 0.50 and USD 0.74 respectively; while their corresponding yields rose to 8.85% (from 8.50%), 13.54% (from 13.42%) and 12.99% (from 12.84%) respectively.

In the new week, we expect the value of FGN Bonds to fall (and yields to rise) as investors scramble for short term fixed income securities.

Nevertheless, we expect investors to demand for Nigerian Eurobonds as yields appear attractive…..