FGN Bond Prices Soar on Bargain Hunting

By Cowry Asset

In the just concluded week, local OTC bond prices appreciated across the maturities due to resumed bargain hunting activity.

Specifically, the 20-year, 10.00% FGN July 2030 bond, the 10-year, 16.39% FGN JAN 2022 paper, the 7-year, 16.00% FGN JUN 2019 paper and the 5-year, 14.50% FGN JUL 2021 paper appreciated by N0.50, N0.39, N0.21 and N0.74 respectively while their corresponding yields fell to 14.85% (from 14.96%), 14.72% (from 14.85%), 14.94% (from 15.09%) and 14.88% (from 15.15%).

Elsewhere, FGN Eurobonds prices also declined for all maturities amid sustained profit taking activities on the London Stock Exchange.

Specifically, the 10-year bonds, 6.75% JAN 28, 2021 and 6.38% JUL 12, 2023 gained N0.01 and N0.20 respectively (corresponding yields decreased to 4.64% and 5.43% respectively); however, the 5-year, 5.13% JUL 12, 2018 bond shed N0.03 (yield rose to 3.49%).

This week, we anticipate a mix of bargain hunting and profit taking at the domestic OTC bond market.

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 dipo.olowookere@businesspost.ng

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