Nigerian bonds seen higher returns at auction

Yields on Nigerian debt are expected to reflect the trend on the secondary market at an auction next week where the government plans to raise 70 billion naira ($352 million) in 5- and 20-year bonds.
 "We expect the July 2034 bond to fetch around 15 percent at the auction next week in alignment with what the market is currently doing," one senior trader said.
 Nigeria plans to sell 70 billion naira worth of bonds next week, its seventh debt auction this year.
Traders said the bond market has been quiet after massive sell-off by some offshore investors who were reacting to the central bank's foreign exchange curbs for some importers.
The central bank last month restricted access to forex by some importers in its bid to protect its foreign reserves.
The yield on the benchmark debt maturing in 2024 rose to 15.02 percent on Friday from 14.87 percent a week ago.
The yield on bond maturing in 2022 rose to 15.02 percent against 14.82 percent, while the yield on the bond due to mature in 2016 fell to 14.43 percent from 14.61 percent last week.