Thursday, December 2, 2021

    FGN Bond Yields Moderate as Bullish Sentiment Dominates…

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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 Bonds increased as traders’ bids were filled at lower yields for most of the maturities tracked.

    Thus, sellers booked capital gain in line with our expectations.

    Specifically, yields fell further for the 5-year 13.53% FGN APR 2025, 10-year 13.98% FGN MAR 2028 and the 10-year 16.29% FGN MAR 2027 gained N0.26, N0.29 and N0.63 respectively; their corresponding yields fell to 11.30% (from 11.39%), 12.25% (from 12.32%) and 12.30% (from 12.50%) respectively.

    However, 20-year, 16.25% FGN MAR 2037 lost N0.02 and its corresponding yield rose to 13.03% (from 13.02%).

    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 USD0.26, USD0.68 and USD0.71 respectively; their corresponding yields rose to 2.92% (2.83%), 7.51% (from 7.44%) and 7.65% (from 7.59%) respectively.

    In the new week, we expect yields to further moderate as local OTC bond prices increase as the appreciating Naira and slowing inflation rate signal buy opportunities.

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