Yields on FGN Bonds Rose Ahead DMO Auction Next Week; Eurobond on Appreciative Mode…..

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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 closed the week at N112.10 as the yield cleared higher to 12.72% from the previous

The same goes for the 15-year 12.50% FGN MAR 2035 instrument and the 20-year 16.25% FGN APR 2037 bond trading in the opposiste direction as the
prices closed the week at N95.97 and N117.61 with increases in the respective yields to 13.16% and 13.46% while the 30-year long-tenored 12.98 FGN MAR 2050 bond stayed flat from the previous week’s close of 13.40%.

This mirrors the expectation of the forthcoming FGN Bonds Auction next week.

Elsewhere, 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 7.35% (from 7.98%), 11.32% (from 12.69%) and 10.97% (from 12.03%) respectively.

In the new week, we expect the value of FGN Bonds to rise while the DMO carry out its monthly FGN Bonds Auction where it will sell instrument worth N225 billion….