OTC FGN Eurobond Yields Rise amid Sustained Bearish Activity…

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In the just concluded week, the value of the FGN Eurobonds traded at the international capital market tanked for all maturities tracked amid sustained bearish activity – the 10-year, 6.75% JAN 28, 2021 bond, the 10-year, 6.38% JUL 12, 2023 note and the 15-year, 6.50% NOV 28, 2027 paper fell by USD0.44, USD1.30 and USD1.94 respectively;
their corresponding yields rose to 5.81%
(from 5.61%), 7.18% (from 6.84%) and
8.28% (from 7.95%) respectively.

On the local scene, the value of FGN bonds traded at the over-the-counter (OTC) segment increased for most maturities tracked amid renewed bullish activity: the 20-year, 10% FGN JULY 2030 debt, the 10-year, 16.39% FGN JAN 2022 debt and the 7-year, 16.00% FGN JUN
2019 paper gained N0.43, N0.32 and N0.09 respectively; their corresponding yield fell to 15.62% (from 15.72%), 14.95% (from 15.09%) and 14.02% (from 14.24%) respectively.

However, the 5-year, 14.50% FGN JUL 2021
note lost N0.05; its corresponding yield rose to 15.42% (from 15.39%).

In the new week, against the backdrop of increased financial system liquidity, we expect higher bond prices at the OTC bonds market amid bargain hunting opportunties..