FGN Eurobond Traded Bullish on Renewed Postive Sentiments…..

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In the just concluded week, the value of FGN bonds traded in the mixed bag for most of the maturities tracked.

Specifically, the 10-year, 16.29% FGN MAR 2027 instrument was bullish, closing the week at N115.87 as the yield declined 0.17% from the previous week

while the 20-year 16.25% FGN APR 2037 remained flat at N124.70 and its yield unchanged at 12.53% from last week’s close.

However, the 15-year 12.50% FGN APR 2035 debt instrument declined N1.25 to close at N98.70 ( from N99.95) and the yield closed at 12.70% (from 12.50%) and then the 30-year 12.98% FGN MAR 2050 bond tanked by N0.10 to N98.70 from N98.80, while it yields closed at 13.49% (from 13.14%).

Further afield, the value of FGN Eurobonds traded during the week at the international debt capital market performed appreciatingly for all maturities tracked on renewed positive investors sentiment.

Consequently, 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 paper close the week in the northern region as their yields declined to 8.55% (from 9.44%), 13.32% (from 13.50%) and 12.57% (from 12.75%) respectively.

In the new week, we expect the value of FGN Bonds, to increase further (and yields to fall) amid increased demand due to the forthcoming FGN Bonds Auction by the DMO…