Nigerian bonds to rise

A further sell-off by some investors booking month-end profits and others covering their short positions could push yields on Nigerian bonds higher.
Traders said the market experienced a sell-off this week after the central bank harmonised the Cash Reserves Requirement (CRR) on public and private sector deposits to 31 percent at its rate-setting meeting on Tuesday.
Previously the CRR on private sector deposits was 20 percent and 75 percent for public sector deposits.
"We are anticipating further a sell-off next week by some investors, especially banks with higher private sector deposits content to make up for shortage of liquidity after the central bank debited CRR on Thursday," one dealer said.
The central bank recalled CRR from the banking system on Thursday in line with its new regime, leaving some commercial lenders in deficit.
Yields on the benchmark debt maturing in 2024 rose to 13.60 percent on Friday, from 13.49 percent last week.
The 2022 paper traded at 13.58 percent against 13.60, while the 2016 note rose to 13.82 percent from 13.72 percent.