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In the just concluded week, the Debt Management Office (DMO) sold N662.62 billion in bonds (N302.62 billion more than its offer), via N144.533 billion for the 13.98% FGN FEB 2028, N65.044 billion for the 12.50% FGN APR 2032, N232.446 billion for the 16.25% FGN APR 2037, and N220.574 billion for the 14.80% FGN APR 2049.
Given the huge subscription, stop rates for the 28s, 32s, 37s, and 49s fell to 14.00%, 14.90%, 15.80%, and 15.90%, respectively, from 14.60%, 14.75%, 15.80%, and 15.80%.
Also, the value of FGN bonds traded in the secondary market moderated further in tandem with the stop rates.
Notably, the 10- year, 16.29% FGN MAR 2027 instrument, the 20-year, 16.25% FGN APR 2037 debt, and the 30-year, 12.98% FGN MAR 2050, rose, respectively, and lost N0.15, N1.74, and N0.81; their corresponding yields rose to 13.41% (from 13.37%), 15.60% (from 15.30%), and 15.10% (from 14.96%).
However, the 15-year 12.50% FGN MAR 2035 remained relatively unchanged week on week, as its corresponding yield stayed steady at 14.58%
In the new week, we expect local OTC bond prices to appreciate (and yields to moderate) amid an expected boost in financial system liquidity..
