Nigerian bonds yields seen climbing

Nigeria's bond yields are seen climbing on tight liquidity in the money market and a sell-off by offshore investors, partly deterred by slowing economic growth.
Yields on all tenors have risen on the back of a sell-off by mostly offshore investors and commercial lenders covering short naira positions as the central bank has sought to support the local currency.
The central bank directed commercial lenders this month to pay for dollar purchases 48 hours in advance in a move aimed at curbing foreign exchange demand.
Traders said weak economic output growth data released this week have also triggered sell-offs by some offshore investors.
Nigeria's economic growth slowed sharply in the second quarter with annual growth slipping to 2.35 percent from 6.54 percent a year earlier, the statistics bureau said this week.
Yields on the longest tenor 2034 debt rose to 15.71 percent week-on-week from 15.50 percent last week.
The benchmark 2024 paper rose by about 52 percentage points to 15.97 percent from 15.45 percent, while the 2022 debt was trading higher at 15.87 percent against 15.50 percent.