Sun. Nov 24th, 2024

FGN Bond Prices Surge on Renewed Buy Pressure

FGN Bond prices

By Cowry Asset

In the just concluded week, FGN bonds traded at the over-the-counter (OTC) segment appreciated in value for most maturities tracked on renewed buy pressure in line with our expectations: the 20-year, 10% FGN JULY 2030 debt, the 7-year, 16.00% FGN JUN 2019 debt and the 5-year, 14.50% FGN JUL 2021 debt appreciated by N0.01, N0.10 and N0.01 respectively; their corresponding yields declined to 14.18% (from 14.19%), 12.64% (from 12.83%) and 13.68% (from 13.69%) respectively; however the 10-year, 16.39% FGN JAN 2022 debt decreased in value by N0.69 and its corresponding yield rose to 13.77% (from 13.55%).

Meanwhile, the value of the FGN Eurobonds traded on the London Stock Exchange depreciated for all maturities tracked – the 10-year, 6.75% JAN 28, 2021 bond, the 10-year, 6.38% JUL 12, 2023 note and the 15-year, 6.50% NOV 28, 2027 paper lost USD0.24, USD0.27 and USD1.30; their corresponding yields rose to 4.93% (from 4.85%), 5.92% (from 5.86%) and 7.04% (from 6.84%) respectively.

Next week, we expect FGN bond prices to rise (with corresponding decrease in yields) at the OTC market amid expected ease in financial system liquidity.

By 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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