By Cowry Asset
In the just concluded week, prices of FGN bonds traded at the OTC segment fell for most maturities amid renewed profit taking; the 20-year, 10 percent FGN JUL 2030 paper, the 7-year, 16.00 percent FGN JUN 2019 and 5-year, 14.50 percent FGN JUL 2021 debts depreciated w-o-w by N0.50, N0.13 and N0.24 respectively; corresponding yields rose to 16.61 percent (from 16.47 percent), 16.89 percent (from 16.80 percent) and 16.51 percent (from 16.41 percent).
However, the 10-year, 16.39% FGN JAN 2022 debt, remained unchanged.
Elsewhere, FGN Eurobonds traded on the London Stock Exchange appreciated in value across all the maturities amid sustained bargain hunting.
The 10-year, 6.38 percent JUL 12, 2023 and 5-year, 5.13 percent JUL 12, 2018 bonds appreciated by
$0.69 (yield fell to 5.39 percent) and $0.05 (yield fell to 3.49 percent) respectively.
This week, we expect bond prices to appreciate at the OTC market on the back of expected ease in financial system liquidity.