Nigeria's bond eyes rate setting policy meeting

Nigeria's debt market is expected to take its next direction from the outcome of the central bank's rate-setting Monetary Committee meeting scheduled for early next week.
    Traders said they were cautious since the committee could take measures to support the flagging local currency, including a possible hike in cash reserves requirements.
    The committee will meet for two days from Nov. 24, against the backdrop of a steep drop in the price of crude oil that has put significant pressure on the naira currency.
    Yields on Nigerian government bonds rose around 50 basis points across all maturities week-on-week, but some local pension funds were seen taking positions in the market on Friday after yields fell from around 14 percent mid-week.
    "We are expected to trade cautiously, waiting to see the outcome of the rate setting meeting of the MPC next week," one dealer said.
    The benchmark 10-year bond rose 52 basis points to 13.70 percent on Friday from 13.18 percent last week, the 2022 was trading around 13.56 percent against 13.23 percent, while 2016 paper was at 13.68 percent versus 13 percent a week earlier.
    The naira has lost 11.42 percent year-to-date on concerns over falling oil prices and exiting of the local debt by offshore investors.