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%.