In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated for most maturities tracked amid renewed bullish activity.
Specifically, the 5-year, 14.50% FGN JUL 2021 bond, the 7-year, 13.53% FGN MAR 2025 note, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN APR 2037 debt gained N0.05, N1.37, N0.05 and N0.39 respectively; their corresponding yields fell to 2.81% (from 2.99%), 5.91% (from 6.23%), 8.09% (from 8.11%) and 10.04% (from 10.07%) respectively.
Meanwhile, the value of FGN Eurobonds traded at the international capital market appreciated for all maturities tracked in line with our expectation.
The 10-year, 6.75% JAN 28, 2021 bond, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.06, USD2.11 and USD2.21 respectively; while their corresponding yields lowered to 4.17% (from 4.45%), 7.81%
(from 8.04%) and 7.89% (from 8.10%) respectively.
In the new week, we expect the value of FGN bonds prices to appreciate (and yields to moderate), amid increasing
demand for fixed income securities with relatively higher yields.