FGN Bond Prices Rise on Bargain Hunting
In the just concluded week, OTC bond prices moved in mixed directions across the maturities due to interplay of bargain hunting and profit taking.
Specifically, the 20-year, 10.00 percent FGN July 2030 bond and the 10-year, 16.39 percent FGN JAN 2022 paper lost N0.02 and N0.26 as the corresponding yields rose to 14.94 percent (from 14.93 percent) and 14.84 percent (from 14.77 percent) respectively.
However, the 7-year, 16.00 percent FGN JUN 2019 paper and the 5-year, 14.50 percent FGN JUL 2021 paper appreciated by N0.13 each while their respective yields fell to 15.05 percent (from 15.15 percent) and 15.04 percent (from 15.08 percent).
Elsewhere, FGN Eurobonds prices rebounded for all maturities amid resumed bargain hunting activities on the London Stock Exchange (LSE).
Specifically, the 10-year bonds, 6.75 percent JAN 28, 2021 and 6.38 percent JUL 12, 2023 lost N0.59 and N0.90 respectively (corresponding yields declined to 4.54 percent and 5.32 percent respectively) while the 5-year, 5.13 percent JUL 12, 2018 bond gained N0.18 (yield moderated to 3.15 percent).
This week, we anticipate likely bargain hunting on the back of expected improvement in financial system liquidity.