Nigeria’s Eurobond Yields Plunges amid Sustained Bearish Sentiments.


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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 most maturities

Specifically, the 10-year, 16.29% FGN MAR 2027 instrument and the 30-year, 12.98% FGN MAR 2050, rose, respectively, by N 1.70 to N 109.00, and N
0.39 to N 86.99.

However, the 20-year 16.25% FGN APR 2037 debt instrument lost N0.05 as its corresponding yield rose to 15.30% (from 15.29%), while the 15-year
12.50% FGN MAR 2035 remained relatively unchanged week on week as its corresponding yield stayed steady at 14.58%.

Elsewhere, the value of FGN Eurobonds traded on the international capital market depreciated further for all maturities tracked amid sustained bearish sentiment.

Specifically, the 10-year, 6.38% JUL 12, 2023, the 20-year, 7.69% paper FEB 23, 2038, and the 30-year, 7.62% NOV 28, 2047, lost USD 0.24, USD 2.01, and USD 2.83, while their corresponding yields rose to 8.34% (from 7.73%), 11.49% (from 11.14%), and 11.39% (from 10.93%), respectively.

the new week, the DMO will auction N225 billion worth of local bonds; viz: N75 billion a piece for the 13.98% FGN FEB 2028, 12.50% FGN APR 2032, 16.25% FGN APR 2037 and 14.80% FGN APR 2049.

Hence, we expect the stop rates to moderate, as DMO might mirror the declining trend in the money market stop rate…

Godwin Okafor
Godwin Okafor
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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