In the just concluded week, sentiment turned negative in the market as bond prices got depressed while the FGN yields expanded for most maturities tracked.
Specifically, investors were mostly bearish on the front end of the
curve as the 5-year, 14.50% FGN JUL 2021, 7-year 13.53% FGN APR 2025 and the 10-year
16.29% FGN MAR 2027 papers lost N0.20,
N0.36 and N0.64 respectively; their
corresponding yields rose to 3.65% (from
3.69%), 12.05% (from 11.94%) and 12.89%
(from 12.75%) respectively.
However, the 20-year, 16.25% FGN MAR 2037 gained N0.03 while its corresponding yield fell to 13.66% (from 13.67%).
Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked; the 10-year, 6.375% JUL 12, 2023, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.61, USD1.33 and USD1.67 respectively; their corresponding yields fell to 2.68% (from 2.79%). 7.16% (from 7.29%) and 7.37% (from 7.51%) respectively.
In the new week, we expect local OTC bond prices to increase (and yields to moderate), especially at the longer end of the curve where yields remain relatively attractive.