Nigeria’s Eurobond Yields Rise amid Sell Pressure…..

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

Specifically, the 20-year 16.25% FGN
APR 2037 debt instrument and the 30-year
12.98% FGN MAR 2050 bond remained flat at
N124.70, and N98.70 respectively while their
yield also remain the same at 12.53% and
13.15% respectively.

However, the 10-year, 16.29% FGN MAR 2027 instrument, and the 15-year 12.50% FGN MAR 2035 fell by N4.38 to N115.70 (from N120.08), and N0.40 to N99.95 (from N100.05) while their yields rose to 11.79% (from 10.70%) and 12.50% (from 12.44%).

Elsewhere, the value of FGN Eurobonds traded at the international capital market rose for all the maturities tracked amid buy pressure.

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 USD 1.16 , USD 7.50 and USD 9.26 respectively; while their corresponding yields fell to 9.44% (from 10.69%), 13.50% (from 15.35%) and 12.75% (from 14.95%) respectively

In the new week, we expect the value of FGN Bonds to increase (and yields to fall) amid increased demand due to the N294.29 billion maturing bills in the money market