LAGOS, May 15 (Reuters) - Nigerian bond yields will take cue from the rate fixing meeting of the central bank on Tuesday.
Traders said speculation over a possible reduction in the cash reserves ratio (CRR) on public sector deposits to 50 percent from current 75 percent at the meeting had fuelled increased buying of bonds during the week.
“The market was bullish at some point in the week when speculations on plans by the central bank to reduce the CRR to 50 percent on public sector deposits from 75 percent filled the market,” one dealer said.
Nigeria sold bonds worth a total of 60 billion naira ($302 million) at lower yields on all tenors at an auction on Wednesday.
“Outlook on the market will depend largely on the outcome of the rate fixing MPC meeting next week,” another dealer said.
Yields on the benchmark debt maturing in 2024 traded at 13.49 percent on Friday compared with 13.77 percent last week. The 2022 paper traded at 13.60 against 13.70 percent while the 2016 traded at 13.72 compared with 13.98 percent. (Reporting by Oludare Mayowa; Editing by James Macharia)