In the just concluded week, the values of FGN Bond tracked decreased as yields rose for most maturities tracked amid sell pressure.
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 N0.20, N0.40 and N0.46 respectively; their corresponding yields rose to 3.82% (from 3.81%), 11.67% (from 11.54%) and 12.25% (from 12.16%) respectively.
However, the 20-year, 16.25%
FGN MAR 2037 gained N1.05 while its yield
decreased to 12.77%(from 12.90%).
Meanwhile, the value of FGN Eurobonds traded at the international capital market increased for most maturities tracked: the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD0.11 and USD0.46 respectively as their corresponding yields fell to 7.46% (from 7.47%) and 7.61% (from 7.66%) respectively.
However, the 10-year, 6.375% JUL 12, 2023 lost USD0.16 while its yield rose to 2.84%(from 2.79%).
In the new week, we expect local OTC bond prices to increase (and yields to moderate) as over N400 billion, 5- year bond issued in 2016 matures.
Hence, we expect the liquidity boost to stimulate buy pressure.