UPDATE 1-Nigerian bond sale falls far short, investors demand higher yields
LAGOS Nov 17 (Reuters) – Nigeria sold far fewer bonds than it offered on Wednesday, as investors demanded higher yields from a government struggling to contain its borrowing costs.
Africa’s largest economy raised 39 billion naira ($128.21 million) in bonds maturing in five, 10 and 20 years time, less than half the 95 billion naira it had wanted.
Our Analysis on Reuters post…
Vicious cycle,,,,
Inflation drives interest rates…interest rates rise…investors demand higher rates…higher rates feed inflation.
Its all back to food prices, food prices drive the CPI basket, as food prices rise, inflation rises…
Its also fue3l prices, as Naira falls in value, imported fuel cost rises, feedinfg inflation.
So policy decision to reduce interest rates means a focus on food and fuel prices…
http://af.reuters.com/article/nigeriaNews/idAFL8N1DI27Z
{article credit: Reuters)
