Friday, July 23, 2021

    OTC FGN Bonds Prices Fall amid Renewed Sell-Offs…

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    Godwin Okafor
    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

    BOND MARKET: In the just concluded week, the value of FGN bonds traded at the over-the-counter (OTC) segment fell for all maturities tracked amid renewed sell pressure: the 20-year, 10% FGN JULY 2030, 10-year, 16.39% FGN JAN 2022 debt, 7-year, 16.00% FGN JUN 2019 and 5year, 14.50% FGN JUL 2021 bond prices decreased by N0.14, N0.54, N0.58 and N0.63 respectively; their corresponding yields rose to 15.79% (from 15.75%), 15.01% (from 14.80%), 14.87% (from 13.85%) and 15.76% (from 15.44%) respectively.

    Elsewhere, the value of the FGN Eurobonds traded at the international capital market tanked for all maturities tracked amid sustained decline in global crude oil prices – 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 USD5.71, USD7.92 and USD2.38 respectively; their corresponding yields rose to 7.54% (from 6.11%), 8.91% (from 7.53%) and 9.14% (from 8.60%) respectively.

    In the new week, amid anticipated increase in financial system liquidity, we expect higher bond prices at the OTC bonds market amid bargain hunting opportunties..

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