OTC FGN Bond Prices Move in Mixed Directions Across the Maturities

In the just concluded week, FGN bond prices traded at the OTC segment moved in mixed directions across the maturities. The 20-year, 10.00% FGN July 2030 debt and the 10-year, 16.39% FGN JAN 2022 debt appreciated by N0.23 and N0.09 respectively; their corresponding yields fell to 15.72% (from 15.79%) and 15.83% (from 15.90%) respectively. However, the 7-year 16.00% FGN JUN 2019 debt and the 5-year, 15.10% FGN APR 2017 debt depreciated by N0.06 and N0.17; their corresponding yields rose to 15.83% (from 15.80%) and 14.38% (from 12.21%) respectively. Elsewhere, FGN Eurobonds traded on the London Stock Exchange increased in value across most of the maturities amid bargain hunting. The 10-year, 6.75% JAN 28, 2021 bond and the 10-year, 6.38% JUL 12, 2023 bond appreciated by USD0.36 (yield fell to 5.40%) and USD0.39 (yield fell to 6.03%) respectively. However, the 5-year, 5.13% JUL 12, 2018 bond lost USD0.02 (yield rose to 3.87%). This week, we anticipate bearish activity in the OTC market with resultant decline in local bond prices on the back of anticipated strain in financial system liquidity.