By Modupe Gbadeyanka
Prices of FGN bond are expected to increase this week at the OTC market with corresponding decrease in yields.
This is according to analysts at Cowry Asset, who said the rise in the bond prices would occur amid expected ease in financial system liquidity.
Last week, FGN bonds traded at the over-the-counter (OTC) segment depreciated in value for most maturities tracked on renewed sell pressure as investors sold their investments in the secondary market for higher stop rates in the primary market: the 20-year, 10 percent FGN JULY 2030 debt; the 7-year, 16.00 percent FGN JUN 2019 debt; and the 5-year, 14.50 percent FGN JUL 2021 debt decreased by N0.29, N0.37 and N0.30 respectively.
Their corresponding yields rose to 14.18 percent from 14.12 percent, 12.83 percent from 12.47 percent and 13.69 percent from 13.56 percent respectively.
However, the 10-year, 16.39 percent FGN JAN 2022 debt increased in value by N0.55 and its corresponding yield fell to 13.55 percent from 13.74 percent.
Meanwhile, the value of the FGN Eurobonds traded on the London Stock Exchange (LSE) appreciated for all maturities tracked – the 10-year, 6.75 percent JAN 28, 2021 bond; the 10-year, 6.38 percent JUL 12, 2023 note; and the 15-year, 6.50 percent NOV 28, 2027 paper gained $0.62, $1.04 and $1.87; their corresponding yields dropped to 4.85 percent from 5.12 percent, 5.86 percent from 6.10 percent and 6.84 percent from 7.13 percent respectively.
Adedapo Adesanya