Nigerian bonds seen easing after central bank holds rate

Yields are seen falling next week after the central bank retained its benchmark rate on Friday. Traders said the bond market was attractive for buyers with the benchmark rate held at 12 percent."Yields should start coming down next week in the aftermath of the rate decision and the expected increase in the liquidity level," one trader said.Nigerian bond yields have risen by around 10 basis point on average this week following profit taking by both offshore and local pension funds following a fall in the price of oil, and concerns on the naira.The local currency has dropped by around 3 percent in the year to date, weakening to its lowest level in more than three months on Thursday due to demand pressure and dollar squeeze.At the bond auction on Wednesday, yields rose marginally on the 3-year to 11.49 percent from 11.12 percent at the previous auction. The 10-year tenor paper fetched 12.23 percent compared with 12.22 percent in August."The market was a seller market this week, mostly by offshore investors taking profit and playing safe because of the falling naira value," one dealer said.