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Friday, April 24, 2015

Technical glitch may affect Nigerian bond trade

Trade in Nigerian bonds was affected by a technical fault that traders said may persist to next week.
 
Trade on local debt was stalled after the glitch affected central bank’s trading platform, traders said, adding that they were concerned the problem that started on Wednesday could run into next week, threatening bond settlement in the interbank.


“(There is) no trading currently going on in the market as a result of the unresolved technical glitch on the central bank’s platform,” one dealer said.

For the periods that the market traded normally this week, yields trended downward after a total of 570 billion naira ($3 billion) in matured bonds was paid out, with many investors keen to re-invest in the market, traders said.

“We have seen fresh interest by some offshore investors, mostly a roll over of matured funds and local pension, which has driven up demand for local debt before the glitch,” a senior traders said, referring to a technical fault that hit trading.

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