In the just concluded week, the DMO allotted N227.05 billion worth of bonds; viz N42.37 for the 13.98% FGN FEB 2028, N115.85 billion for the 12.40% FGN MAR 2036 and N118.83 billion for the 12.98% FGN MAR 2050.
In line with our expectation, stop rate for 50s rose to 13.00% (from 12.80%).
However, stop rates for 28s and 36s were flattish at 11.60% and 12.75% respectively.
Activity in the secondary market was bullish as traders expect yield to decline in the coming week. Hence, the 5-year, 13.53% FGN APR 2025 paper, 10-year 16.29% FGN MAR 2027 bond, 10-year 13.98% FGN MAR 2028 debt and the 20-year 16.25% FGN MAR 2037 gained N0.61, N3.03, N0.01 and N0.85 respectively; their corresponding yields moderated to 9.79% (from 10.00%), 11.02% (from 11.70%), 11.59% (from 11.60%) and 12.65% (from 12.76%) respectively.
Meanwhile, the value of FGN Eurobonds traded at the international capital market further fell for most maturities tracked; the 10-year, 6.375% JUL 12, 2023 was flat at 2.86%, 20-year, 7.69% FEB 23, 2038 paper and 30-year, 7.62% NOV 28, 2047 debt lost USD0.53, USD1.76 and USD2.30 respectively; their corresponding yields rose to 3.08% (from 2.82%), 7.76% (from 7.57%) and 7.79% (from 7.71%) respectively.
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.