LAGOS, May 28 (Reuters) - Nigeria’s debt market is expected to take cue from policy changes under the new administration of president-elect Muhammadu Buhari, who is due to be inaugurated on Friday.
Traders said most offshore investors remain on the sidelines waiting for the new government to state its economic agenda and a possible removal of tight controls on the forex market.
Nigerian financial markets will be closed for business on Friday as Buhari takes the oath of office.
“Investors will be watching out for clues on the policy direction of the incoming government as the president unveils his cabinet and major policy direction in the coming weeks before taking major leaps,” one dealer said.
Traders said the market was mixed this week with some sell-off seen after a spell of bearish trade earlier in the week, while yields trended up on some tenors.
“We anticipate initial sell-off by some investors booking profits, but largely the market will wait for a clear direction from the new government,” one dealer said.
Yields on the benchmark debt maturing in 2024 rose to 13.83 percent on Thursday from 13.60 percent last week.
The 2022 paper traded at 13.86 percent, up from 13.58 percent last week, while the 2016 note fell to 13.78 percent compared with 13.82 percent. (Reporting by Oludare Mayowa; Editing by James Macharia)