The yields on Nigerian bonds are seen rising this week on uncertainty over a delayed presidential election, while a planned Monetary Policy Committee (MPC) meeting to set rates on March 24 would also unnerve investors, traders added, reports Reuters.
The continent’s largest oil producer is facing a faltering economy after global oil prices plunged, weakening the naira. Nigeria raised N91 billion ($455 million) in bonds last week, with maturities ranging between 5-year and 20-year at higher returns across the board. “Trading is expected to be mixed next week (this week) but the market would likely stay above the 16 percent resistance level,” one dealer said.
Yields on the 2016 debt closed flat at 16.15 percent compared with 16.16 percent penultimate week, while the 2022 debt note dropped to 16.03 percent from 16.07 percent previously. The benchmark 2024 debt note, however, rose sharply to 16.63 percent from 16.13 percent last week.
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