By Dipo Olowookere
The average yields of FGN bonds at the local bond market depreciated last week to 14.73 percent amid sell pressure ahead of the now postponed presidential election.
Cowry Asset said the value of FGN bonds traded at the over-the-counter (OTC) segment gained for most maturities tracked amid sustained bullish activity.
The 7-year, 13.53% FGN MAR 2025 note; 10-year, 16.29% FGN MAR 2027 debt; and 20-year, 16.25% FGN APR 2037 bond appreciated by N0.17, N0.23 and N0.67 respectively, with their corresponding yields falling to 14.68 percent from 14.72 percent, 14.67 percent from 14.72 percent and 14.42 percent from 14.51 percent respectively.
However, the 5-year, 14.50% FGN JUL 2021 paper depreciated by N1.05 and its yield rose to 15.16 percent from 14.63 percent.
Elsewhere, the value of the FGN Eurobonds traded at the international capital market appreciated for most maturities tracked amid renewed buy pressure.
Business Post reports that the average yields for the FGN Eurobonds depreciated to 6.24 percent.
The 10-year, 6.75% JAN 28, 2021 paper; and 20-year, 7.69% FEB 23, 2038 note rose by $2.22 and $4.33; their corresponding yields moderated to 5.17 percent from 6.20 percent and 5.40 percent from 5.70 percent respectively.
However, 30-year, 7.62% NOV 28, 2047 paper fell by $5.96 while its corresponding yield rose to 8.16 percent from 5.92 percent.
In the new week, analysts expect FGN bond prices to increase, with corresponding fall in yields at the OTC market amid expected ease in financial system liquidity.
Adedapo Adesanya