Saturday, December 4, 2021

    FGN Bond Yields Fall as Prices Remain Elevated ahead of Auction in the Coming Week…

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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, activity in the secondary market was largely bullish for most maturities tracked as traders anticipated lower stop rates in line with the recent fall in 364-day T-bill stop rate.

    Specifically, the 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 gained N1.30, N0.15 and N0.67 respectively; their corresponding yields fell to 11.35% (from 11.65%), 11.71% (from 11.75%) and 12.88% (from 12.97%) respectively.

    However, the 5-year, 13.53% FGN APR 2025 paper lost N0.36, its corresponding yield rose to 10.14% (from 10.03%).

    Elsewhere, the value of FGN Eurobonds traded at the international capital market appreciated for most maturities tracked; the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained USD1.24 and USD1.54 respectively; their corresponding yields fell to 7.97% (from 8.11%) and 8.05% (from 8.20%) respectively.

    However, the 10-year, 6.375% JUL 12, 2023 bond lost USD0.10, its corresponding yield rose to 3.63% (from 3.62%).

    In the new week, the DMO will auction N150 billion worth of local bonds; viz: N50 billion a piece for the 12.50% FGN FEB 2026, 16.25% FGN MAR 2037 and 12.98% FGN MAR 2050 Re-Openings.

    Hence, we expect the stop rates to moderate – mirroring the drop in the money market rate for 364-day bill to 7.25%.

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