Yields on Nigerian T-bills seen rising

Yields on Nigerian debt are seen trending up next week over political uncertainty after the six-week postponement of the Feb. 14 presidential elections. Nigeria is expected to hold its general election on March 28 and April 11.

The currency of Africa’s top oil producer has also tumbled after concern grew about political stability exacerbating a fall triggered when global oil prices collapsed.

“We anticipate yields trending up as a number of investors will be cautious toward the period of election as the political risk heightens,” one dealer said.

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Traders said tight liquidity early in the week caused some bond holders to cut back their positions to get cash for operations, but yields fell toward the end of the week.

Yields on the 2016 debt closed at 16.42 percent, down from 16.85 percent last week. The 2022 paper traded at 16 percent against 16.20 percent.

The benchmark 2024 debt note closed at 16.04 percent compared with 16 percent last week.