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FGN Bond Update: Bearish Streak Remains

Last week, the FGN Bond secondary market witnessed a bearish performance as average yield increased 11bps W-o-W to settle at 18.40% from 18.29% recorded the previous week.

A further breakdown shows that selloffs were witnessed at all ends of the curve, as average yield rose by 9bps, 1bp and 21bps at the short, mid, and long ends respectively. Specifically, the MAR-2027, JUN-2038, and JUL-2045 instruments expanded 30bps, 91bps and 66bps to close at 18.11%, 18.85% and 18.52% sequentially.

Today, Monday (18-Mar-24), the Debt Management office (“DMO”) will offer ₦450.00bn across the MAR-2027, FEB-2031, and FEB-2038 maturities at the PMA.

This week we expect the result of the auction to dictate the direction of the market. We advise investors to take advantage of maturities with attractive offers in the secondary market particularly at the short end of the curve.


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