In the just concluded week, the value of FGN bonds was bearish for most maturities we tracked in the secondary market amid renewed sell-pressure.
Particularly, the 10-year 13.98%
FGN MAR 2028 debt, 10-year 16.29% FGN
MAR 2027 bond and the 20-year 16.25% FGN
MAR 2037 paper lost N1.28, N1.05 and N0.28
respectively; their corresponding yields rose to 11.85% (from 11.56%), 11.98% (from 11.76%) and 12.99% (from 12.95%) respectively.
However, the 5-year, 13.53% FGN APR 2025
paper increased by N0.02 and its corresponding yield fell to 9.60% (from 9 .62%).
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 USD0.71, USD4.12 and USD4.74 respectively; their corresponding yields rose to 4.65% (from 4.22%), 8.87% (from 8.37%) and 8.96% (from 8.45%) respectively.
In the new week, we expect local OTC bond prices to rise (and yields to decrease) as traders react to lower rates,
especially for the 364-day T-bills.