Don't Miss


Home   >   Business   >   Industries   >   Economy   >   Nigeria bonds to rise on election jitters

Nigeria bonds to rise on election jitters

By on March 17, 2015

The yields on Nigerian bonds are expected to rise this week on uncertainty over a delayed presidential election, while other African countries including Kenyan Treasury bill yields will ease further on increased liquidity.

Nigerian bonds yields will rise as the country prepares to hold the presidential elections on March 28, while a planned Monetary Policy Committee meeting to set rates on March 24 will also unnerve investors, according to analysts.

According to Reuters, The country is facing a faltering economy after global oil prices plunged, weakening the naira.

The Federal Government had raised N91bn in bonds last week, with maturities ranging between five-year and 20-year at higher returns across the board.

“Trading is expected to be mixed this week but the market would likely stay above the 16 per cent resistance level,” one dealer said.

Yields on the 2016 debt closed flat last week at 16.15 per cent compared with 16.16 per cent the previous week, while the 2022 debt note dropped to 16.03 per cent from 16.07 per cent previously.

 

[Punch]