Nigerian bond yields to rise, Kenya's to hold steady

Yields on Nigerian bonds are expected to rise next week with investors expected to cut back on their positions before the year-end in order to raise local currency for their obligations.
Nigeria's local debt market has experienced a sell-off in recent weeks on concerns about falling global oil prices and their impact on the local currency, which has lost about 11 percent against the dollar this year.
The central bank devalued the naira by 8 percent in a one-off move last week as it sought to stem a slide in the country's foreign exchange reserves which have been hit by the oil price slump. Investor concern has reduced hard currency inflows into the country's debt and equity markets.
"Liquidity was tight in the week ... and this has triggered some sell-off to raise cash by some investors," one dealer said.
Buying of bonds by local pension funds in the past few weeks has failed to reverse the tide, traders said.
Most offshore investors have been on the sidelines, monitoring the impact of monetary policy measures on the local currency and how the government plans to cope with dwindling revenue from weaker oil prices.
Yields on the benchmark 10-year bond rose to 13.45 percent from 13.30 percent last week, while the 2016 bond was trading at 13.70 percent against 13.40 percent last week. The 2022 bond was trading at 13.72 percent versus 13.14 percent previously.