Monday, June 21, 2021

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

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    Naija247news Media, New York
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    In the just concluded week, sentiment remained bearish in the market despite the unchanged policy rate at 11.50% and the CBN’s effort in harmonizing the Naira to address the exchange rate issues.

    Notably, FGN Yields rose for most maturities tracked and we saw the 20-year tenor rise as high as 14.06% during the week.

    Specifically, the 5-year, 14.50% FGN JUL 2021 bond, the 10-year 16.29% FGN MAR 2027
    bond and the 20-year, 16.25% FGN MAR 2037
    lost N0.31, N0.29 and N0.14 respectively; their corresponding yields increased to 4.00% (from 3.27%), 13.10% (from 13.04%) and 14.06% (from 13.85%) respectively.

    However, the 7-year 13.53% FGN APR 2025 paper gained N0.16 respectively while its corresponding yield fell to 12.43% (from 12.49%).

    Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked; the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.35 and USD0.51 respectively; their corresponding yields fell to 7.38% (from 7.42%) and 7.56% (from 7.60%) respectively.

    However, the 10-year, 6.375% JUL 12, 2023 paper lost USD3.44 while its yield rose to 2.82% (from 2.81%).

    In the new week, we expect local OTC bond prices, especially at the longer end of the curve, to increase (and yields to moderate) as yield remain relatively attractive.

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