In the just concluded week, the values of FGN bonds traded at the secondary market fell further for most maturities tracked given the sudden rise in stop rates in the money market.
Specifically, the 5-year, 14.50% FGN JUL 2021 bond, the 10-year, 16.29% FGN MAR 2027 debt and the 7-year, 13.53% FGN MAR 2025 note lost N0.51, N10.58 and N3.52 respectively; their corresponding yields rose to 0.51% (from 0.15%), 3.28% (from 1.26%) and 4.34% (from 3.90%) respectively.
However, the 20-year, 16.25% FGN APR 2037 paper appreciated by N17.58; its corresponding yield fell to 5.34% (from 6.31%).
Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked on sustained bullish activity.
The 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt further gained USD0.01 and USD0.05 respectively; while their corresponding yields fell to 7.05% (from 7.06%) and 7.17% (from 7.18%) respectively.
However, the 10-year, 6.75% JAN 28, 2021 bond lost USD0.11, the yield rose to 3.89% (from 3.50%
In the new week, Debt Management Office will issue bonds worth N60 billion, viz: 12.50% FGN APR 2035 (15- Yr re-opening) worth N30 billion and 9.80% FGN JUL 2045 (25-Yr re-opening) worth N30 billion respectively.
We expect the bonds stop rates to be sticky as CBN begins to mop up financial system liquidity via special T-bills.