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In the just concluded week, sentiment
remained bullish at the secondary market as
the values of FGN bonds traded increased and
yields contracted for most maturities tracked.
The sustained demand for government- backed securities further pushed the yields
downward.
Specifically, the 10-year 16.29% FGN MAR 2027, the 15-year 12.50% FGN MAR 2035, and the 20-year 16.25% FGN APR 2037 debts rose by N0.36, N0.61, and N0.42, respectively; their corresponding
yields contracted to 12.93% (from 13.05%),
14.68% (from 14.80%), and 15.73% (from 15.81%), respectively.
However, the yield on the 30-year 12.98% FGN MAR 2050 stayed unchanged at 15.20%.
Elsewhere, the value of FGN Eurobonds traded on the international capital market depreciated for all maturities tracked due to renewed bearish activity.
Specifically, the 10-year 6.38% JUL 12 2023, the 20-year 7.69% FEB 23 2038, and the 30-year 7.62% NOV 28 2047 lost USD 0.19, USD 0.71, and USD 0.46, while their corresponding yields expanded to 12.46% (from 11.55%), 12.27% (from 12.13%), and 11.89% (from 11.81%), respectively.
In the new week, we expect local OTC bond prices to moderate (and yields to increase) as prospective investors demand higher rates in tandem with rates in the primary market…
