FGN Bond Yields Move in Mixed Directions as Traders Position Ahead of the Auction…


In the just concluded week, sentiment in the secondary market was a mixed bag as the
value of FGN bonds traded moved in different directions across maturities tracked as traders
cherry-picked bonds’ maturities.

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Specifically, the 16.29% FGN MAR 2027 debt, lost N1.59, while its corresponding yield expanded to 13.50% (from 13.01%).

On the flip side, the 30-year 12.98% FGN MAR 2050 bonds gained N0.25 while their yield
contracted to 15.60% (15.65%). The 15-year 12.50% FGN MAR 2035 and the 20-year 16.25% FGN APR 2037 paper yields remained unchanged at 14.75% and 15.40% from the previous week.

Meanwhile, the value of FGN Eurobonds traded on the international capital market depreciated for all maturities tracked due to sustained bearish sentiment.

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 repriced lower by USD 0.20, USD 1.18, and USD 1.48, while their corresponding yields leaped to 13.14% (from 11.82%), 13.15% (from 12.90%), and 12.87% (from 12.57%), respectively.

In the new week, the Debt Management Office (DMO) will auction N360 billion worth of bonds, viz., N90 billion (a piece) for the 13.98% FGN FEB 2028, 12.50% FGN APR 2032, 13.00% FGN JAN 2042, and 12.98% FGN APR 2050 re-openings.

Hence, we expect the stop rates to rise marginally, given our expectation for inflation to climb slightly to 22.1% in March…

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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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