AFRICA DEBT-Kenyan yields seen continuing an uptrend next week

Kenya's central bank could accept most bids offered at its Treasury bill auction next week, keeping an upward trend on yields, while dealers expect Nigerian yields to trade at similar levels to this week's.
KENYA
Kenyan Treasury yields are expected to inch up when the central bank auctions 12 billion shillings' worth of 91-day , 182-day and 364-day bills.
At this week's sale, the weighted average yield on the 91-day bills rose to 11.438 percent from 10.250 percent at their previous sale, while the yield on the 182-day Treasury bills rose to 11.585 percent from 10.711 percent.
The yield on the one-year Treasury bills also jumped, at 11.186 percent from 10.981 percent last week.
Traders said the yields were expected to continue their upward trend, which started last month when the central bank started to accept most of the bids offered, to fill a funding gap.
Next week's auction is the first of a new financial year. Dealers said yields should edge up and they would wait to see if the bank continued its trend of picking up most of the bids.
NIGERIA
Nigerian debt yields are expected to trade around similar levels to this week in the face of increased liquidity and possible month-end profit-taking by some investors.
"We expect yields to stay broadly flat around the same levels next week as investors move in and out to balance their portfolio," one dealer said.
Bond yields have ranged between 11.37-11.48 percent at the short end, while the long tenor fetched 12.05-12-15 percent.
Traders said the local debt market is currently dominated by local pension fund managers, with offshore interest muted due to falling yields.
Nigeria sold 134.5 billion naira of treasury bills with maturities ranging from 3-month to one year this week at lower yields.