FGN Bond Yields Fall in Tandem with Primary Market Stop Rates…


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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..

Godwin Okafor
Godwin Okaforhttps://naija247news.com
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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