Tuesday, May 18, 2021

FGN Bond Yields Rise For Most Maturities Tracked amid Sustained Bearish Trend…

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In the just concluded week, sentiment remained bearish at the secondary market as the values of FGN bonds traded decreased and yields expanded for all maturities tracked.

The demand for higher rates further pushed the yields upward.
Accordingly, the 5-year, 14.50%
FGN JUL 2021, 7-year 13.53% FGN APR 2025,
10-year 16.29% FGN MAR 2027 and 20-year,
16.25% FGN MAR 2037 lost N0.22, N1.46,
N0.98 and N4.93 respectively; their
corresponding yields rose to 3.01% (from
3.00%), 11.47% (from 11.03%), 12.46% (from 12.25%) and 13.96% (from 13.29%) respectively.

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 USD0.01, USD0.18 and USD0.58 respectively; their corresponding yields increased to 2.95%(from 2.93%), 7.41%(from 7.39%) and 7.58%(from 7.52%) respectively.

In the new week, we expect local OTC bond prices to moderate (and yields to increase) as bearish bias continues in the market.

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