Bond yields rise on FX, higher borrowing risks

bond yields rose more than 10 basis point along the curve on Monday as domestic investors worried about the impact of a weaker currency on inflation and a possible rise in government borrowing, traders said.

The most liquid 5-year bond yield climbed 12 basis points to 14.71 percent on Monday, while the 10-year benchmark yield climbed 10 basis points.

Investors had hoped for a rally after smooth elections in March ended uncertainties about political risk in Africa’s biggest economy. But worries over the government’s finances and the continued slide in the currency have spooked investors.

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