Friday, September 24, 2021

    FGN Bond Stop Rates Falls for All Maturities amid Demand Pressure…

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    Naija247news Editorial Team
    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, the DMO allotted N241.97 billion worth of bonds; viz N31.71 billion and N103.90 billion (non-competitive allotment) for the 13.98% FGN FEB 2028, N51.16 billion for the 12.40% FGN MAR 2036 and N55.20 billion for the 12.98% FGN MAR 2050.

    In line with our expectation, stop rates moderated to 12.35% (from 13.50%), 13.15%
    (from 16.77%) and 13.25% (from 13.77%) for
    all maturities.

    In line with the direction in the primary market, yields at the secondary market fell for all maturities tracked. Specifically, the 5-year 13.53% FGN APR 2025, 10-year 13.98% FGN MAR 2028, 10-year 16.29% FGN MAR 2027 and the 20-year, 16.25% FGN MAR 2037 gained N0.29, N0.20, N0.08 and N0.30 respectively; their corresponding yields fell to 11.51%(from 11.61%), 12.30% (from 12.42%), 12.33% (from 12.35%) and 13.14% (from 13.18%) respectively.

    Meanwhile, the value of FGN Eurobonds traded at the international capital market moderated for all 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 lost USD0.03, USD0.21 and USD0.18 respectively; their corresponding yields rose to 2.80% (2.78%), 7.40% (from 7.38%) and 7.55% (from 7.54%) respectively.

    In the new week, we expect local OTC bond prices to increase (and yields to moderate) as traders continue to hunt for bargain in line with the trend in the primary market.

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