FGN Bond Yields Rise for Most Maturities Tracked on Sustained Bearish Trend…


In the just concluded week, the values of FGN bonds traded at the secondary market depreciated as yields increased for most maturities tracked amid sustained bearish activity.

Notably, the 5-year, 14.50% FGN JUL 2021 bond, the 7-year, 13.53% FGN APR 2025 paperandthe20-year, 16.25% FGN MAR 2037 notelost N0.29, N0.21 andN11.44respectively; their corresponding yields rose to 0.50% (from 0.49%),5.46% (from5.44%)and8.02% (from 7.23%)respectively.

However,the10-year, 16.29% FGN MAR 2027 debt gained N0.88; its corresponding yield fell to6.34% (from 6.50%).

Meanwhile, the value of FGN Eurobonds traded at the international capital market appreciated for most maturities tracked.The 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD2.15 and USD2.43 respectively, while their yields fell to 6.86% (from 7.07%)and 6.99% (from 7.18%) respectively.

However, the 10-year, 6.75% JAN 28, 2021 bond lost USD0.12; while its corresponding yields rose to 7.53% (from 5.31%).

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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