Bond Yields to Drop at OTC Market amid Financial System Liquidity Ease

By Modupe Gbadeyanka

Analysts in the financial markets have predicted that this week, there would decreases in the bond yields at the OTC market.

The declines are expected to occur amid financial system liquidity ease.

According to Cowry Asset, the FGN Eurobonds traded on the London Stock Exchange depreciated in value last week for all maturities tracked amid sustained sell pressure; 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 decreased in value by N0.60, N0.14 and N1.16 respectively; their corresponding yields rose to 5.47 percent from 5.24 percent, 8.18 percent from 6.58 percent and 5.95 percent from 5.69 percent respectively.

Meanwhile, FGN bonds traded at the over-the-counter (OTC) segment appreciated in value across maturities tracked on renewed bullish activity; the 20-year, 10 percent FGN JULY 2030 debt, the 10-year 16.39 percent FGN JAN 2022 debt, the 7-year 16.00 percent FGN JUN 2019 debt and the 5-year 14.50 percent FGN JUL 2021 debt increased by N0.22, N0.76, N0.64 and N0.02 respectively; their corresponding yields fell to 13.39 percent from 13.43 percent, 13.19 percent from 13.45 percent, 12.11 percent from 12.79 percent and 13.27 percent from 13.28 percent respectively.