Bond prices to increase at OTC market this week amidst liquidity ease

ANALYSTS AT FB NQUEST HAVE said that the over-thecounter (OTC) market will witness bond prices increase amidst expected ease in financial system liquidity.

The researchers said, “In the new week, we expect FGN bond prices to increase with corresponding fall in yields at the over-the-counter (OTC) market amid expected ease in financial system liquidity”

Last week, the value of FGN bonds traded at the over-the-coun- ter (OTC) segment gained for most maturities tracked amid sustained bullish activity.

The 7-year, 13.53 percent FGN MAR 2025 note, 10-year, 16.29 percent FGN MAR 2027 debt and 20year, 16.25 percent FGN APR 2037 bond appreciated by N0.17, N0.23 and N0.67 respectively, as their corresponding yields fell to 14.68 percent from 14.72%, 14.67 percent from 14.72 percent and 14.42 percent from 14.51 percent respectively.

However, the 5-year, 14.50 percent 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, the 10-year, 6.75 percent JAN 28, 2021 paper and 20-year, 7.69 percent 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 percent NOV 28, 2047 paper fell by $5.96 while its corresponding yield rose to 8.16 percent from 5.92 percent.

L-R: Olumide Bolumole, head, listing business division, The Nigerian Stock Exchange (NSE) presenting a replica of the closing gong to Mahmud Tukur, managing director/CEO, Eterna Plc during a closing gong ceremony to commemorate its 30th year anniversary at the exchange in Lagos.