Already a Bloomberg.com user?
Sign in with the same account.
July 8 (Bloomberg) -- Nigerian bonds declined, with yields headed for the first weekly increase in three on concern the central bank of sub-Saharan Africa’s second-biggest economy will raise rates to curb inflation, eroding returns.
The 5.5 percent debt due 2013 of Africa’s largest oil producer reached 9.82 percent yesterday, climbing 47 basis points, or 0.47 percentage point, since the close on July 1, according to data from the Financial Market Dealers Association available on Bloomberg.
Nigeria’s inflation quickened to 12.4 percent in May as three increases in its benchmark interest rate this year to 8 percent by May failed to curb price growth and bring it in line with the central bank’s 10 percent target.
“We sensed a feeling that single-digit inflation will again be elusive in 2011,” Gregory Kronsten and Olubunmi Asaolu, analysts at FBN Capital Ltd., wrote in a note to clients today. “The tightening cycle has at least a further 50 basis points to run.” FBN Capital is a unit of First Bank of Nigeria Plc, the country’s third-largest lender.
The West African nation may not attain its goal of cutting the inflation rate to below 10 percent this year, central bank Governor Lamido Sanusi said on June 20.
The naira snapped two days of declines, strengthening 0.3 percent to 152.825 per dollar at 12:08 p.m. in Lagos. The increase pared the currency’s decline to 1.1 percent this week, a first retreat in three weeks.
--Editors: Ana Monteiro, Stephen Kirkland, Linda Shen.
To contact the reporter on this story: Emele Onu in Lagos at email@example.com
To contact the editor responsible for this story: Antony Sguazzin at firstname.lastname@example.org