Nigerian bonds to rise slightly

DMO chief, Nwankwo

Yields on Nigerian bonds are seen up slightly at an auction next week, in tandem with market sentiment this week as some offshore investors and local pension positioned ahead of the auction.
Traders said some offshore and local pension are shielding weight ahead of bid at the auction next Wednesday where 100 billion naira ($614.06 million) in 3-, 10- and 20-year bond will be offered by the Debt Management Office.
"Most offshore investors and local pensions are selling down their holdings in preparation to take position at the auction next week," one dealer said.
Dealers said bonds bought at the auction usually attracted better returns for investors, hence the sell-off ahead of the auction on the secondary market.
Yields have climbed around 50 basis points across the board on the most active traded bonds on the secondary market this week due to profit taking by investors, traders said.
Nigeria's 2022 maturity was trading at 20.11 bid on Friday, while the 2024 paper was at 12.17 percent, both around 50 basis points higher than they opened on Monday, traders said