So, the Monetary Policy Committee, MPC of the Central Bank of Nigeria, CBN could not hold its regular meeting to determine interest rate on Monday this week and its ripple effects are already being felt in the debt market.

On Thursday, investors asked for higher interest rates in the bond auction held by the government.

The Debt Management Office, DMO raised 110 billion naira at interest rates higher than ones offered at previous bond auction.

The DMO sold 45.12 billion naira in 5-year debt on Wednesday at 13.38% and auctioned 64.88 billion naira of 10-year bonds at 13.49%, higher than 13.19% and 13.21% respectively it fetched at the last auction.

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The total subscription at the sale was 150 billion naira.

The CBN said on Monday it would not hold a meeting to fix interest rates due to its inability to form a quorum and maintained benchmark rates at 14%, a level it has kept since July 2016.

Traders said investors bought bonds at higher yields at the auction to hedge against a possible rate cut later in the year, as inflation continues to decline, fueling speculation about the outlook for official interest rates.

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