OTC FGN Eurobond Yields Rise amid Sustained Bearish Activity…


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..