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%.