FGN Bond Prices Rise on Bargain Hunting

By Cowry Asset

In the just concluded week, OTC bond prices declined across the maturities due to sell pressure.

Specifically, the 20-year, 10.00% FGN July 2030 bond, the 10-year, 16.39% FGN JAN 2022 paper, the 7-year, 16.00% FGN JUN 2019 paper and the 5-year, 14.50% FGN JUL 2021 paper depreciated by N0.08, N0.05, N0.06 and N0.30 respectively while their corresponding yields rose to 14.96% (from 14.94%), 14.85% (from 14.84%), 15.09% (from 15.05%) and 15.15% (from 15.04%).

Elsewhere, FGN Eurobonds prices also declined for all maturities amid renewed profit taking activities on the London Stock Exchange.

Specifically, the 10-year bonds, 6.75% JAN 28, 2021 and 6.38% JUL 12, 2023 lost N0.40 and N0.78 respectively (corresponding yields increased to 4.66% and 5.47% respectively) while the 5-year, 5.13% JUL 12, 2018 bond shed N0.26 (yield rose to 3.50%).

This week, we anticipate likely bargain hunting on the back of expected improvement in financial system liquidity.