Monday, August 2, 2021

    FGN Bond Yields Move in Mixed Directions for Most Maturities Tracked…

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    Godwin Okafor
    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

    In the just concluded week, FGN Yields moved in mixed directions for most maturities tracked amid mixed sentiment.

    Specifically, bonds at the short end of the curve traded bearish as the 5-year, 14.50% FGN JUL 2021 paper and 7-year 13.53% FGN APR 2025 debt lost N0.21 and N0.51 respectively; their corresponding yields rose to 3.65% (from 3.64%) and 12.21% (from 12.05%) respectively.

    However, the 10- year 16.29% FGN MAR 2027 bond and the 20- year, 16.25% FGN MAR 2037 paper gained N1.03 and N0.93 respectively; their corresponding yields fell to 12.65% (from 12.89%) and 13.53% (from 13.66%).

    Meanwhile, the value of FGN Eurobonds traded at the international capital market fell for most maturities tracked; the 10-year, 6.375% JUL 12, 2023 bond, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt lost USD0.22, USD1.22 and USD1.16 respectively; their corresponding yields rose to 2.75% (from 2.68%), 7.28% (from 7.16%) and 7.47% (from 7.37%) respectively.

    In the new week, the DMO will auction N150 billion worth of bonds; viz: N50 billion (a piece) for the 16.29% FGN MAR 2027, 12.50% FGN MAR 2035 and and 12.98% FGN MAR 2050 Re-Openings.

    Hence, we expect the stop rates to stay flattish amid declining inflation rate and as Naira appreciates against the greenback.

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