Bond Auction for Wednesday, Jan 20, 2016

Proshare

Tuesday, January 19, 2016 15:11 PM / ASAM

This is to inform you that the DMO through the CBN on behalf of the Federal Govt. of Nigeria shall be conducting a public auction of bonds on Wednesday, January 20th, 2016 which will be delivered on Friday January 22nd, 2016.

Find the details as presented in the table below:



ON BID RATE: In our opinion, we advise that you give reasonable quotes with reference to current and short term market prospects. We project our stop rates based on the following:

·         High volume of liquidity in the fixed income market,

·         Increased bond issuance in the first quarter of 2016,

·         Falling price of Crude Oil.


15.54%FGN FEB2020 Bond: This is a re-opening and was issued last month at 10.952%. It is currently trading at an offer yield of 12.41% (as at 18th January).

FGN JAN2026 Bond: This is a new issue. The closest maturity (Mar 2024) is trading at an offer yield of 12.32% (as at 18th January).

Recommendation: Expected spot rates are shown below;



Kindly note that assumptions are based on current market trends.

If you will like to participate, you could download attached form from ASAM, fill and forward the attachment forms to info@arthursteven.com or research@arthurstevenng.com, along with your payment to enable them submit on your behalf. 
 

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