Nigeria's bond yields are seen flat in the week ahead after the debt market broke through the resistance level of 16 percent this week on a persistent sell-off by mostly offshore investors and commercial lenders covering the naira's position.
Nigerian local debt has been under pressure thanks to falling global oil prices, a slowing economic outlook in Africa's biggest economy, and a weak naira.
 |
| Okonkwo, DMO boss |
"The market has been bearish all week as we finally crossed the 16 percent resistant level today (Friday)," one dealer said.
Dealers said the sell-off in the debt market reflected the global trend and development in the local equity market, which has falling to around six month low this week.
"The economic outlook remain hazy and many investors are moving their funds to other assets because of the uncertainty in the market," another dealer said.
Last week, Nigeria released GDP data showing weak economic output growth and this 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 last week.
Dealers said the market should remain quiet in the coming week having seen a bearish level for a while.
The benchmark 2024 paper climbed to 16.02 percent from 15.97 percent, while the 2022 debt was trading higher at 16.08 percent against 15.87 percent.
Yields on the longest tenor 2034 debt rose to 15.94 percent on Friday from 15.71 percent last week.
0 comments:
Post a Comment