FGN Bond Yields Rise in Tandem With Primary Market Stop Rates…


In the just concluded week, the DMO offered N60 billion worth of bonds at higher rates.

Specifically, the 15-year and 25-year re-opening worth of N30 billion and N30 billion was issued at 6.945% (from 5.00%) and 7.00% (from 5.79%) respectively.

Also, the values of FGN bonds traded at the secondary market
moderated further in tandem with the stop rates.

Notably, the 5-year, 14.50% FGN JUL 2021
bond, the 10-year, 16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN MAR 2037 note lost N0.20, N4.03 and N31.94 respectively; their corresponding yields rose to 0.52% (from 0.51%), 4.86% (from 3.28%) and 7.20% (from 5.34%) respectively.

However, the 7-year, 13.53% FGN APR 2025 paper appreciated by N0.01; 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, its yield rose to 3.89% (from 3.50%)

In the new week, we expect local OTC bond prices to appreciate (and yields to moderate) amid expected boost in financial system liquidity.

Also, we expect investors to further patronise the Eurobond market amid relatively higher local bond yield

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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.

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