By Dipo Olowookere
Analysts at Cowry Asset have predicted that this week, the prices of FGN bonds prices are expected to appreciate (with decreases in their corresponding yields) at the OTC market amid expected financial system liquidity ease.
Last week, FGN bonds traded at the over-the-counter (OTC) segment depreciated in value for most maturities tracked on renewed sell pressure; the 20-year, 10% FGN JULY 2030 debt, the 10-year 16.39% FGN JAN 2022 debt and the 7-year 16.00% FGN JUN 2019 debt tanked by N1.10, N1.56 and N0.63 respectively; their corresponding yields rose to 13.81% (from 13.59%), 13.68% (from 13.16%) and 12.50% (from 11.91%) respectively.
However, the 5-year 14.50% FGN JUL 2021 debt appreciated in value by N0.02 and its yield moderated to 13.46% (from 13.47%).
Meanwhile, FGN Eurobonds traded on the London Stock Exchange depreciated in value for most maturities tracked amid sustained sell pressure – the 10-year, 6.75% JAN 28, 2021 bond, the 5-year, 5.13% JUL 12, 2018 paper and the 10-year, 6.38% JUL 12, 2023 note shed N0.50, N0.07 and N1.11 respectively; their corresponding yields rose to 6.08% (from 5.88%), 11.73% (from 8.50%) and 6.55% (from 6.28%) respectively.
