FGN Bond Prices Close Bullish Across Maturities

By Cowry Asset

In In the just concluded week, OTC bond prices climbed further amid bargain hunting activities.

Specifically, the 20-year, 10% FGN JUL 2030 paper, the 10-year, 16.39% FGN JAN 2022 debt, the 7-year, 16.00% FGN JUN 2019 and the 5-year, 14.50% FGN JUL 2021 debt appreciated by N0.35, N1.14, N0.40 and N0.92 respectively; corresponding yields fell to 16.26% (from 16.35%), 15.89% (from 16.26%), 15.95 (from 16.21%) and 16.02% (from 16.35%).

Elsewhere, FGN Eurobonds traded on the London Stock Exchange depreciated in value for all of the maturities amid sustained profit taking.

Prices of the 10-year, 6.75% JAN 28, 2021, the 5-year, 5.13% JUL 12, 2018 and the 10-year, 6.38% JUL 12, 2023 bonds fell by USD0.46 (yield rose to 4.56% from 4.43%), USD0.15 (yield rose to 3.37% from 3.22%) and USD0.61 (yield rose to 5.24% from 5.12%).

This week, we anticipate further bond price appreciation at the OTC market on the back of expected ease in the financial system liquidity.