By Cowry Asset
In the just concluded week, the Debt Management Office (DMO) auctioned FGN bonds worth N243.78 billion viz: the 5-year, 14.50% FGN JUL 2021 worth N35.26 billion, 10-year, 16.29% FGN MAR 2027 worth N76.93 billion and the 20-year, 16.25% FGN APR 2037 worth N131.59.
Furthermore, OTC bond prices appreciated further amid sustained bargain hunting activities.
Specifically, the 20-year, 10% FGN JUL 2030 paper and the 10-year, 16.39% FGN JAN 2022 debt appreciated by N1.70 and N0.16 respectively, corresponding yields fell to 15.84% (from 16.26%), 15.83% (from 15.89%).
However, the 7-year, 16.00% FGN JUN 2019 depreciated by N0.10 with yield rising to 16.01% (from 15.95%) while the 5-year, 14.50% FGN JUL 2021 debt remained unchanged.
Elsewhere, FGN Eurobonds traded on the London Stock Exchange depreciated in value for all of the maturities amid sustained profit taking.
Prices of the 10-year, 6.75% JAN 28, 2021, the 5-year, 5.13% JUL 12, 2018 and the 10-year, 6.38% JUL 12, 2023 bonds fell by USD0.55 (yield rose to 4.72% from 4.56%), USD0.19 (yield rose to 3.57% from 3.37%) and USD1.05 (yield rose to 5.44% from 5.24%).
This week, we anticipate further bond price appreciation at the OTC market on the back of expected bargain hunting activities.
