Nigeria Bond Yields Fall Sharply as CBN Eyes Lending

Yields on Nigeria's bonds fell sharply across maturities on Tuesday as liquidity surged on the interbank money market, traders said, adding that the central bank was loosening monetary policy to spur credit growth.

Nigeria's 2017 bond fell the most, down 110 basis point to 6.9 percent, a level last seen more than five years ago, traders told Reuters. The 10-year benchmark bond shed 72 basis point to 10.25 percent.

Overnight lending rates traded between 0.5 and 1 percent on Tuesday as banks' balance on the interbank market stood at a credit of ₦850 billion ($4.3 billion), traders said.