FGN Bond Prices Drop Across Most Maturities

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.