OTC FGN Bond Prices Fall for Most Maturities Amid Sell Pressure

By Cowry Asset

In the just concluded week, FGN bond prices traded at the OTC segment depreciated for most of the maturities as the bears dominated transactions amid liquidity strain.

The 20-year, 10.00% FGN July 2030 debt, the 10-year, 16.39% FGN JAN 2022 debt and the 7-year

16.00% FGN JUN 2019 debt depreciated by N0.93, N1.94 and N0.47 respectively; their corresponding yields rose to 15.95% (from 15.72%), 16.50% (from 15.83%) and 16.07% (from 15.83%) respectively.

However, the 5-year, 15.10% FGN APR 2017 debt appreciated by N0.05; its corresponding yields fell to 14.32% (from 14.38%).

Elsewhere, FGN Eurobonds traded on the London Stock Exchange decreased in value across all the maturities amid profit taking.

The 10-year, 6.75% JAN 28, 2021 bond, the 5-year, 5.13% JUL 12, 2018 bond and the 10-year, 6.38% JUL 12, 2023 bond depreciated by USD0.02 (yield rose to 5.39%), USD0.10 (yield rose to 3.92%) and USD0.13 (yield rose to 6.04%) respectively.

This week, we anticipate bullish activity in the OTC market on the back of anticipated ease in financial system liquidity.

Source: https://cowryasset.com/