Nigeria sold 75 billion naira ($476.10 million) worth of 5-, 7- and 10-year sovereign bonds maturing in 2017, 2019 and 2022 at an auction on Wednesday, with yields inching up by just more than 70 basis points.

Nigeria, sub-Saharan Africa’s second biggest bond market was included in the JP Morgan’s Government Bond Index for emerging markets (GBI-EM) on Oct. 1, spurring an initial rapid fall in yields in local bond as investors took positions.

The inclusion in the JP Morgan index is expected to attract about $1.5 billion in offshore investment in the local bond market, the bank says.

Nigeria sold 15 billion naira in the 5-year bond at 13.68 percent, compared with 12.93 percent last month, and 30 billion naira apiece in the 7-year and 10-year bond at 13.74 percent and 13.50 percent, respectively.

The 7-year bond was issued at 12.90 percent previously, while the debt office issued the 10-year note at 15.90 percent at the August auction, the last time it was issued.

Traders said a more than 300 basis point fall in yields last month provided an opportunity for many investors to sell, pushing yields back up.

Total subscription for the notes stood at 144.32 billion naira compared with 82.94 billion naira last month.

Africa’s second-biggest economy issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit. ($1 = 157.53 naira)

Source: Reuters (Reporting by Oludare Mayowa; Editing by Tim Cocks)