FGN Bond Yields Rise for all Maturities Tracked on Bearish Trend


…In the just concluded week, the values of FGN bonds traded at the secondary market further crashed as yields moved in upward direction for all maturities tracked amid traders’ demand for higher rates.

Notably, the 5-year, 14.50% FGN JUL 2021 bond, the 7-year, 13.53% FGN APR 2025 paper, the 10-year,16.29% FGN MAR 2027 debt and the 20-year, 16.25% FGN MAR 2037 note lost N0.25, N7.64, N5.25 and N3.37 respectively; their corresponding yields rose to 0.45% (from 0.40%), 4.84% (from 3.25%), 5.58% (from 4.86%) and 7.42% (from 7.20%) respectively.

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked on sustained bullish activity.

The 10-year, 6.75% JAN 28, 2021 bond gained USD7.46; while its corresponding yields fell to 3.15% (from 3.31%). However, the 20-year, 7.69% FEB 23, 2038 paper lost USD2.98, its yield rose to 7.05%.

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

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