In the just concluded week, sentiment remained bullish at the Fixed Income space as investors continue to offer the bonds at lower yields amid demand pressure; although we noticed a bit of funding pressure immediately after T-bills
Specifically, the 5-year 13.53% FGN APR 2025, the 10-year 16.29% FGN MAR 2027
bond, 10-year 13.98% FGN MAR 2028 bond
and 20-year 16.25% FGN MAR 2037 paper
gained N1.41, N1.44, N0.72 and N1.57
respectively; their corresponding yields fell to 10.26% (from 10.72%), 11.13% (from 11.45%), 11.40% (from 11.55%) and 12.47% (from 12.67%) respectively.
Meanwhile, the value of FGN Eurobonds traded at the international capital market rose 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 gained USD0.26, USD1.48 and USD1.44 respectively; their corresponding yields rose to 2.93% (3.09%), 7.59% (from 7.75%) and 7.71% (from 7.84%) respectively.
In the new week, we expect yields to further moderate as local OTC bond prices increase even as funding pressure amongst participants eases.