Ease in Financial System Liquidity to Stabilise Bond Market This Week

By Modupe Gbadeyanka

The over-the-counter (OTC) bond market is expected to experience stability this week amid ease in financial system liquidity.

This is according to analysts at Cowry Asset, who noted that last week, the FGN Eurobonds traded on the London Stock Exchange depreciated in value for all maturities tracked on sustained bearish activity.

It was disclosed that the 10-year, 6.75 percent JAN 28, 2021; the 5-year, 5.13 percent JUL 12, 2018; and the 10-year, 6.38 percent JUL 12, 2023 declined in value by N1.18, N0.08 and N1.51 respectively.

Also, their corresponding yields rose to 5.19 percent from 4.74 percent, 5.80 percent from 5.31 percent and 5.77 percent from 5.44 percent respectively.

Meanwhile, FGN bonds traded at the OTC segment tanked in value across maturities tracked.

The 20-year, 10 percent FGN JULY 2030 debt; the 10-year 16.39 percent FGN JAN 2022 debt; and the 7-year 16 percent FGN JUN 2019 debt depreciated by N0.33, N0.59 and N2.18 respectively; while their corresponding yields rose to 13.09 percent from 13.02 percent, 13.25 percent from 13.07 percent and 11.98 percent from 10.09 percent respectively.