Nigeria's Bonds, Eurobond Yield Mixed as Naira Rebounds

Nigeria’s Bonds, Eurobond Yield Mixed as Naira Rebounds

Amidst a debt management office auction, the local bond market traded on a quiet note while investors sold off Eurobond in the international debt capital market amidst uncertainties in the global economy.

At the investors’ and exporters’ foreign exchange market, the Naira strengthened against the United States dollar, exchanging at N461.50 (from N461.83). Likewise, the parallel market appreciated by 0.67% to N746 from N75

Debt office launched N360 billion FGN reopening bonds and market analysts said they expect subscriptions to spike as investors seek higher returns given the double-digit inflation rate.

The subscription level estimate was anchored on the liquidity level in the financial system. Meanwhile, the financial market saw improved liquidity on Monday.

Thus, short-term benchmark rates, such as the open repo rate (OPR) and the overnight lending rate (OVN), fell to 12.25% (from 13.25%) and 12.70% (from 13.80%), respectively, Cowry Asset told clients in an email.

In the local bond market, the prices of FGN bonds closed on a flat note with a thin trading record. Consequently, the average secondary market yield remained unchanged at 13.27%, analysts said.

Traders at Cowry Asset Management Limited said in a market brief that the 20-year FGN Bonds were richer by 38 basis points. The debt paper’s yield decreased to 15.33% on Monday.

This is lower when compared to 15.40% on record in the previous trading session on account of buying interest. In the bond space, amidst the mixed trading pattern witnessed following investors’ mood swings on naira assets, the 10-year, 15-year, and 30-year FGN Bond yields stayed steady at 12.44%, 14.69%, and 15.00%, respectively.

Elsewhere, the value of the FGN Eurobond traded lower for most of the maturities amid sustained bearish sentiment.  Similarly, the average secondary market yield expanded to 14.18%.  #Nigeria’s Bonds, Eurobond Yield Mixed as Naira Rebounds

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