Yields expected to rise at Nigerian bond auction

Yields on Nigerian local debt are expected to rise at an auction next week amid waning interest from offshore investors who have been exiting the market as the U.S Federal Reserve  scales down its monetary stimulus.
Nigeria plans to sell 90 billion naira ($550 million) in 3- and 20-year bonds at its monthly debt auction on Feb. 12.
Traders said they expected yields on the two bonds to increase by around 50 basis points each at the auction.
At the last sale in January, the yield on the 3-year bond rose 20 basis points to 13.10 percent, while that on the 20-year paper climbed 40 basis points to 13.60 percent.
Treasury bill yields spiked at a sale this week in which the central bank raised 189.27 billion naira ($1.16 billion).
The 91-day bill yielded 11.75 percent yield, up 100 basis points from the previous auction on Jan. 22. The yield on the 182-day paper rose to 12.22 percent, from 11.94 percent previously, while that on the 364-day instrument climbed more than 100 basis points to 13.34 percent

KENYA
Demand for Kenyan Treasury bills is likely to be muted at a sale next week as investors may be put off by the marginal movement in yields in recent weeks.
The central bank plans to auction 91-, 182-, and 364-day Treasury bills worth a total of 9 billion shillings ($104.65 million).
"I'm expecting money market liquidity to improve but only have a marginal effect on the Treasury bill auction," said Alex Muiruri, a fixed-income trader at African Alliance Investment Bank.
He cited the lack of significant movement in yields on the Treasury bills, which have been stuck within a narrow band for weeks.
The yield on the 91-day Treasury bill edged down to 9.18 percent at this week's auction from 9.19 percent at the previous auction.
Yields on the 182-day and 364-day  instruments inched down 1 basis point each to 10.35 percent and 10.68 percent.