Nigerian bond yields seen further up

Nigerian bond yields are expected to rise next week as concern about falling global oil prices and a weakening currency persists.
Offshore investors have been cutting back on their local debt holdings since last month, putting the local currency under pressure and sending bond yields higher.
Traders said yields has gone up by around 30 basis points since last week as more investors dumped the local debt and repatriated their funds back to their home countries.
At the primary auction this week, the debt management office (DMO) sold about 83.94 billion naira($509.62 million) in bonds of maturities between 3 and 20 years. It offered higher yields to attract foreign investors unnerved by falling oil prices and a weakening naira.
"With the prevailing market sentiment, yields will continue to rise in the near term. More investors are cautious at this point because of the falling oil price, which has implications on the local economy," said one dealer.
Yield on the benchmark 2024 bond rose to 12.81 percent on Friday, compared with 12.59 percent last week, while 2022 paper was trading around 12.88 percent against 12.60 percent last Friday.
The local currency has fallen more than 3.65 percent year-to-date as pressure on the naira persisted.