20-Year FGN Bond Yield Rises to 9.20% at OTC Market

FGN Bond prices

By Modupe Gbadeyanka

The yield on the 20-year FGN bond at the over-the-counter (OTC) market increased to 9.20 per cent this week from 9.14 per cent last week.

According to data obtained from Cowry Asset, this followed the decline in the value of the two-decade paper, 16.25% FGN APR 2037 bond, by 76 kobo during the three-day trading week.

It was observed that the increase in the yield of the bond was as a result of selling pressure on the maturity at the market.

However, the 10-year, 16.29% FGN MAR 2027 debt increased by N8.27 and its corresponding yield moderated to 6.75 per cent from 8.00 per cent, while the yield on the 7-year, 13.53% FGN MAR 2025 note remained unchanged at 4.97 per cent.

Meanwhile, the value of FGN Eurobonds traded at the international capital market rose for most maturities tracked amid sustained demand pressure.

During the week, the 20-year, 7.69% FEB 23, 2038 paper and the 30-year, 7.62% NOV 28, 2047 debt gained $0.36 and $0.27 respectively, while their corresponding yields fell to 8.53 per cent from 8.57 per cent and 8.49 per cent from 8.52 per cent respectively.

However, the 10-year, 6.75% JAN 28, 2021 bond went down by $0.02 with its corresponding yield rising to 4.24 per cent from 4.23 per cent.

In its outlook for the bond market next week, Cowry Asset said it expects “the OTC bond prices to appreciate and yields to moderate amid increasing demand for fixed income securities with a relatively higher yield, against the backdrop of ample financial system liquidity.”

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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