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Analysts Forecast Fall in FGN Bond Yields This Week

By Modupe Gbadeyanka

“This week, we expect FGN bond prices to increase, with corresponding fall in yields, at the OTC market amid expected ease in financial system liquidity,” analysts at Cowry Asset have said.

Last week, FGN bond prices traded at the over-the-counter (OTC) segment moved in different directions across maturities tracked: the 20-year, 10% FGN JULY 2030 debt and the 7-year, 16.00% FGN JUN 2019 debt decreased by N1.23 and N0.52 respectively; their corresponding yields rose to

15.17 percent from 14.88 percent and 13.94 percent from 13.34 percent respectively.

However, the 10-year, 16.39% FGN JAN 2022 debt and the 5-year, 14.50% FGN JUL 2021 debt increased by N0.30 and N0.33 and their corresponding yields fell to 14.21 percent from 14.33 percent and 14.27 percent from 14.42 percent respectively.

Meanwhile, the value of the FGN Eurobonds traded on the London Stock Exchange further appreciated for all maturities tracked amid renewed sell pressure – the 10-year, 6.75% JAN 28, 2021 bond, the 10-year, 6.38% JUL 12, 2023 note and the 15-year, 6.50% NOV 28, 2027 paper lost $0.34, USD0.65 and $0.78; their corresponding yields rose to 5.47 percent from 5.33 percent, 6.46 percent from 6.30 percent and 7.56 percent from 7.44 percent respectively.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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