Nigeria's bond yields to rise as offshore investors sell

Yields on Nigeria's local currency denominated bonds are expected to rise next week as offshore investors and some local investors sell holdings.
"We are anticipating a massive sell off next week from some offshore investors still holding their positions in the market," one dealer said, adding some local pension funds could follow suit.
JP Morgan is expected to remove Nigerian bonds from its Emerging Market Government Bond Index (EM-GBI) by the end of October, prompting the shift out.
Yields on the benchmark 2024 paper dropped to 13.49 percent on Friday from 13.60 percent last week, but are seen rising above 14 percent level next week.
"A sell-off either by the remaining offshore investors in the market or pension funds ahead of the auction on Nov. 11, would lead to increased yields in the near term," a senior treasurer said.