Friday, September 24, 2021

    FGN Bond Stop Rates Falls Further as Traders Offered Lower Yields to Boost Capital Gain…

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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 values of FGN Bond tracked increased as traders offered lower yields for most of the maturities tracked in order to boost capital gain.

    In line with our expectations, yields at the secondary market fell further for most maturities tracked.

    Specifically, the 5-year 13.53% FGN APR 2025, 10-year 13.98% FGN MAR 2028 and the 20-year, 16.25% FGN MAR 2037 gained N0.33,
    N0.16 and N0.86 respectively; their
    corresponding yields fell to 11.39%(from
    11.51%), 12.30% (from 12.32%) and 13.02% (from 13.14%) respectively.

    However, 10-year 16.29% FGN MAR 2027 lost N0.79 and its corresponding yield rose to 12.50% (from 12.33%).

    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 USD0.14, USD0.33 and USD0.39 respectively; their corresponding yields rose to 2.83% (2.80%), 7.44% (from 7.40%) and 7.59% (from 7.55%) respectively.

    In the new week, we expect more of sell-offs in the secondary market as traders offer bonds around the stop rate levels. Hence the local OTC bond prices should increase and yields moderate.

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