In the just concluded week, sentiment remained bearish at the OTC market as the values of FGN bonds traded decreased and yields expanded for all maturities tracked. Sell-offs continued as traders requested for higher rates at the bond market.
Specifically, the 5-year, 14.50% FGN JUL 2021, 7-year 13.53% FGN APR 2025 and 10-year 16.29% FGN MAR 2027 lost N0.24, N2.38 and N2.90 respectively; their
corresponding yields rose to 3.10% (from
3.01%), 12.22% (from 11.47%) and 13.10%
(from 12.46%) respectively.
However, the 20-year, 16.25% FGN MAR 2037 closed flat at a yield of 13.96%.
Meanwhile, the value of FGN Eurobonds traded at the international capital market rose 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 gained USD0.01, USD0.17 and USD0.40 respectively; their corresponding yields decreased to 2.90% (from 2.93%), 7.39% (from 7.41%) and 7.54% (from 7.58%) respectively.
In the new week, we expect local OTC bond prices to moderate (and yields to increase) as bearish bias continues in the market.