FGN Bond Prices Rise on Bargain Hunting

October 29, 2017
FGN Bond Prices Rise on Bargain Hunting

By Cowry Asset

In the just concluded week, OTC bond prices appreciated for most maturities on bargain hunting activity. Specifically, the 20-year, 10.00% FGN July 2030 bond, 10-year, 16.39% FGN JAN 2022 paper and the 5-year, 14.50% FGN JUL 2021 paper appreciated by N1.14, N3.30 and N0.58 as the corresponding yields fell to 14.93%, 14.77% and 15.08% respectively.

Meanwhile, the Debt Management Office (DMO), on Wednesday, offered federal government bonds worth N100 billion, viz: 5-year, 14.50% FGN JUL 2021 paper worth N50 billion and 10-year, 16.29% FGN MAR 2017 paper worth N50 billion.

Marginal rates for each maturity moderated to 15.00% from 15.99% and 15.90% respectively.

Elsewhere, FGN Eurobonds depreciated for most maturities amid profit taking activities on the London Stock Exchange.

Specifically, the 10-year bonds, 6.75% JAN 28, 2021 and 6.38% JUL 12, 2023 lost N0.30 and N0.45 respectively (corresponding yields rose to 4.73% and 5.50% respectively) while the 5-year, 5.13% JUL 12, 2018 bond lost N0.02 (yield rose to 3.46%).

This week, we anticipate likely bargain hunting on the back of expected improvement in financial system liquidity.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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