Yields on the Eurobonds of Africa’s biggest oil producer due 2021 rose ten basis points, or 0.10 percent, to 5.471 percent as of 3:12 p.m. in London.
West Texas Intermediate crude dropped as much as 2.6 percent to $93.65 per barrel. Greece failed to agree on a unity government and European Union officials considered the nation’s possible exit from the euro. Brent crude, trading at about $110 a barrel today, should drop to $100 as supply outweighs demand, Saudi Oil Minister Ali al-Naimi said yesterday in Adelaide, Australia.
“Upside risk is growing,” Charles Robertson, the London- based global chief economist at Renaissance Capital, wrote in an e-mailed note today. “The best hope for individual markets is that local credit growth (Russia, Nigeria) and local structural reform (Russia, Nigeria, Turkey, Poland, Kazakhstan) - offset global anxieties - but that’s evidently not happening this morning.”
Nigeria’s naira gained 0.1 percent to 157.765 per dollar on the interbank market in Lagos, the commercial capital, its biggest gain since May 2. The West African country sold $150 million at an auction today, with the exchange rate appreciating by less than 0.1 percent to 155.70 naira, the Abuja-based Central Bank of Nigeria said in an e-mailed statement.
“This week, we expect to see stability in the foreign exchange market partly on account of anticipated dollar inflows from foreign portfolio investors bidding for bonds,” analysts at Lagos-based Cowry Asset Management Ltd., led by Edgar Ebinum, wrote in an e-mailed note to clients today.
Nigeria plans to sell 70 billion naira ($444 million) of five- to 10-year bonds at an auction on May 16, the debt management agency said on May 9.
Borrowing costs on domestic bonds due 2015 gained three basis points to 14.99 percent as of May 11 data on the Financial Markets Dealers Association website.
Ghana’s cedi fell 0.6 percent to 1.8930 per dollar, in the capital Accra, the weakest since at least June 1993.
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