Home / Financial Services/ Bond market activity picks up as yields edge up ahead of weekly auction

Bond market activity picks up as yields edge up ahead of weekly auction


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 5 September 2018 00:00

Facebook

 

  • Liquidity drops to one-and-half-month low

 By Wealth Trust Securities

Activity in the secondary bond market picked up yesterday as yields were seen increasing marginally on the back of local and foreign selling interest.  

The yields of the maturities 2021’s (i.e. 01.03.21, 01.05.21, 01.08.21, 15.10.21 and 15.12.21), 01.10.22, 15.07.23 and 01.08.24 were seen increasing to intraday highs of 9.50% each, 9.56%, 9.60%, 9.65%, 9.85%, 9.95% and 10.15% respectively against its previous day’s 9.47/50, 9.48/52, 9.52/58, 9.58/63, 9.60/65, 9.80/84, 9.90/93 and 10.00/02. Furthermore, a limited amount of activity was witnessed on the 2019’s (i.e. 15.01.19, 01.07.19 and 15.09.19) and 01.06.26 at levels of 8.52%, 8.97% to 8.98%, 9.00% and 10.12%.

At today’s weekly bill auction, a total amount of Rs. 11 billion will be on offer consisting of Rs. 4 billion on the 91 day and Rs. 7 billion of the 364 day maturities. At last week’s auction, the weighted average yields on the 91 day and 364 day maturities decreased by six and one basis points respectively to 8.03% and 8.99%. The 182 day bill was not on offer.

The total secondary market Treasury bond/bill transacted volumes for 3 September 2018 was Rs. 1.00 billion.

The net surplus in the money market was seen dipping to a one-and-a-half-month low of Rs. 4.98 billion yesterday as the Open Market Operations (OMO) Department of Central Bank refrained from conducting any auctions. The overnight call money and repo rates averaged 7.89% and 8.00% respectively.

Rupee depreciates 

to new low

The USD/LKR rate on spot contracts was seen depreciating further yesterday to close the day at a new low of Rs. 161.95/00 against its previous day’s closing of Rs. 161.65/70 on the back of continued importer demand and foreign selling in rupee bonds.

The total USD/LKR traded volume for 3 September was $ 74.27 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 162.75/95; three months - 164.25/55 and six months - 166.70/00.

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Difference between a woman and a man (yin and yang) and finding solutions to violence in society

Thursday, 18 July 2019

This is not at all a philosophical discourse on gender differences, or the complementary roles of yin and yang (women and men) in social or biological formation. This is also not to speak about who is superior among the two. This is just an observati


I wish Sajith Premadasa had taken up a challenging ministry to showcase his prowess

Thursday, 18 July 2019

Expectations, father and son Sajith Premadasa has put his hands up for leadership in the party and for nomination by the United National Party in the forthcoming presidential elections. I wish Sajith had tested himself, and had given the public a cha


Foreign Affairs and Defence to be one portfolio?

Thursday, 18 July 2019

Unless we are all suffering from dementia, the last experience with a foreign military on our soil should be very clear in our heads. The Indian Peace Keeping Force landed in Sri Lanka to supposedly bring peace to the war-torn country when the LTTE t


Federer lessons for Sri Lanka tourism

Thursday, 18 July 2019

The Wimbledon Men’s Final in 2008 was termed as the best match the world has seen between the two arch rivals Federer and Nadal. But, what we saw last Sunday between the two of them after 11 years sure shocked the world. Many just asked the questio


Columnists More