In the fixed-income space, investor sentiment remained bearish in the secondary market as yields increased for most maturities tracked.Thank you for reading this post, don't forget to subscribe!
Specifically, we saw traders’ profit-taking activity at the longer end of the curve as yield, especially for the 30-year, 12.98% FGN MAR 2050 debt, which lost N0.80 as yields rose to 15.45% (from 15.30%).
Also, the 15-year, 12.50% FGN MAR 2035 paper incurred losses of N3.65,
resulting in an elevated yield of 14.72% (from 14.00%).
Meanwhile, the 10-year, 16.29% FGN MAR 2027 bond and the 20- year, 16.25% FGN APR 2037 note held steady at 13.05% and 15.19%, respectively.
Meanwhile, the value of FGN Eurobonds traded on the international capital market depreciated for all maturities tracked.
Notably, the 10-year, 6.50% NOV 28, 2027, the 20-year, 7.69% FEB 23 2038, and the 30-year, 7.62% NOV 28 2047 bonds experienced losses of USD 1.49, USD 1.21, and USD 1.38, respectively, leading to expanded yields of 10.46% (up from 10.93%), 11.36% (up from 11.57%), and 11.21% (up from 11.44%).
In the new week, we expect local OTC bond prices to depreciate (and yields to rise) amid an expected strain in financial system