Nigerian bond yields expected to fall on budgetary allocations

Nigerian bond yields expected to fall on budgetary allocations]
Nigeria issued 168.28 billion naira ($1 billion) in Treasury bills with maturities ranging from three months to one year this week
Nigeria issued 168.28 billion naira ($1 billion) in Treasury bills with maturities ranging from three months to one year this week
Nigerian bond yields are likely to fall next week as state
agencies get their national budget allocations, flooding the market with cash.
Bond yields have hovered around 11.6-11.7 percent at the short end of the curve and 12.15-12.35 percent on longer-tenure paper, in a week characterised by strong demand from local pension funds.
“We expect demand for debt paper to rev up next week when portions of budgetary allocations to government agencies hit the market, with yields falling to around 11.25 percent on the 3-year paper,” one dealer said.
Nigeria issued N168.28 billion ($1 billion) in Treasury bills with maturities ranging from three months to one year this week. Yields were lower than at its previous auction.