Friday, January 28, 2022

    Investors Cherry Picks FGN Bonds as Yields Move in Mixed Directions…

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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, the value of FGN bonds moved in mixed directions in the
    secondary market as investors cherry picked maturities with attractive yields.

    Particularly, the 5-year, 13.53% FGN APR 2025 paper and the 20-year 16.25% FGN MAR 2037 paper gained N2.80 and N0.16 respectively; their corresponding yields moderated to 9.63% (from 10.59%) and 12.88% (from 12.91%)

    On the flip side, the 10-year 16.29% FGN MAR 2027 bond and the 10-year 13.98% FGN MAR 2028 debt lost N0.17 and N0.28 respectively; their corresponding yields rose to 11.59% (from 11.56%) and 11.68% (from 11.62%) respectively.

    Elsewhere, the value of FGN Eurobonds traded at the international capital market depreciated for all 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 USD0.20, USD0.38 and USD0.25 respectively; their corresponding yields rose to 4.16% (from 4.06%), 8.13% (from 8.08%) and 8.24% (from 8.21%) respectively.

    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 6.50%.

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