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…