In the just concluded week, activity in the secondary market was largely bearish for all maturities tracked amid traders expectations of higher yield.
Specifically, 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 paper lost N1.37, N3.17, N0.98 and
N1.66 respectively; their corresponding yields rose to 10.03% (from 9.61%), 11.65% (from 10.96%), 11.75% (from 11.55%) and 12.97% (from 12.76%) respectively.
Elsewhere, the value of FGN Eurobonds traded at the international capital market depreciated for most maturities tracked; the 10-year, 6.375% JUL 12, 2023 bond, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt lost USD0.78, USD2.58 and USD2.59 respectively; their corresponding yields rose to 3.62% (from 3.19%), 8.11% (from 7.82%) and 8.20% (from 7.95%) respectively.
In the new week, we expect local OTC bond prices to further moderate (and yields to rise) as traders remain on the sidelines ahead of the T-bills auction which would tell the direction for the week.