Nigerian bond yields still rising

Yields on Nigerian debt are seen up marginally at a Treasury bond auction next Wednesday, reflecting the prevailing returns on the secondary market, with investors expected to buy more of the five-year paper at the auction.
Nigeria plans to raise 80 billion naira ($402 million) in bonds with maturities ranging between 5-year and 20-year.
Traders said however that many investors were unwilling to take long positions in the market until new President Muhammadu Buhari unveils his economic policy, which could curtail demand and force the debt office to raise yields at the auction.
"We have seen some sell-off at the secondary market by some investors who are eyeing the auction," one dealer said, adding that the demand may still not be enough to push yields lower.
Yields have generally been rising this week because of selling pressure from investors and commercial lenders to meet other financial obligations, another dealer said.
The benchmark debt maturing in 2024 inched up to 13.95 percent on Friday from 13.88 percent a week ago.
The yield on the 2022 paper also rose to 13.96 percent compared with 13.86 percent, while the 2016 note inched up slightly to 13.96 percent against 13.80 percent.