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.