- Nigerian bond yields are expected to fall next week on expectations that the central bank will cut the cash reserve requirements (CRR) at its meeting on Tuesday, leaving banks with more money to invest in fixed income assets.
- “The market is bullish presently because everyone is expecting a reduction in CRR at the MPC meeting next week,” one dealer said, referring to the bank’s Monetary Policy Committee meeting.
- Nigeria central bank now requires banks to keep 31 percent of both public and private sector deposits in a reserve account with the central bank.
- The yield on benchmark 2024 paper was quoted at 15.34 percent from 16.02 percent last week. The yield on 2022 paper was 15.48 percent, down from 16.13 percent last week. The longest tenor paper 2034 was trading at 15.44 percent against 16.11 percent last week.
