The harmonization of the Cash Reserves Requirement (CRR) on public and private sector deposits in Nigeria has led to a slight rise in local debt yields.

The rise was noticed after the harmonization triggered a sell-off by some investors, Reuters reports.

The Central Bank of Nigeria (CBN) revised the CRR to 31 percent for both public and private sector deposits on Tuesday, May 19, 2015.

The CRR on private sector deposits was initially set at 20 percent while the rate for public sector deposits was 75 percent.

"Some banks that have their deposits skewed to private sector are selling down their bond holdings in order to make provision for the increase in the CRR on the deposit, driving up yields at the market," one dealer said.

The yield on the benchmark bond maturing in 2024 inched up to 13.63 percent from 13.60 percent the previous day, while that on the 2022 paper rose to 13.59 percent from 13.51 percent.