In the just concluded week, the DMO offered via auction N150 billion worth of bonds; viz N50 billion (a piece) for the 16.29% FGN MAR 2027, 12.50% FGN MAR 2035 and 9.80% FGN MAR 2045 re-openings but sold N157.95 billion across the three maturities on offer.
Stop rates jumped to 12.25% (from 10.50%), 13.34% (11.50%) and 13.85% (from 12.00%) respectively.
Also, the values of FGN bonds traded in the secondary market decreased as yields rose for most maturities tracked.
Specifically, the 5-year, 14.50% FGN JUL 2021 and 7-year, 13.53% FGN APR 2025 lost N0.34 and N0.01 respectively; their corresponding yields rose to 3.01% (from 2.54%) and 11.03% (from 11.02%) respectively.
However, the 10-year 16.29% FGN MAR 2027 gained N0.16, its yield decreased to 12.25% (from 12.30%); while the 20-year, 16.25% FGN MAR 2037 closed flat at a yield of 13.29%.
Meanwhile, the value of FGN Eurobonds traded at the international capital market fell for all maturities tracked; the 10-year, 6.375% JUL 12, 2023 paper, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt lost USD0.18, USD0.13 and USD0.44 respectively; their corresponding yields increased to 2.95% (from 2.90%), 7.39% (from 7.38%) and 7.52% (from 7.49%) respectively.
In the new week, we expect local OTC bond prices to moderate (and yields to increase) as prospective investors demand higher rates in tandem with rates in the primary market.