Home / Financial Services/ Bond yields decrease marginally ahead of weekly bills auction

Bond yields decrease marginally ahead of weekly bills auction

Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 22 January 2020 02:02

By Wealth Trust Securities

The secondary bond market yields were seen decreasing marginally yesterday ahead of today’s weekly Treasury bill auction. Buying interest on the 2023’s (i.e. 01.09.23 & 15.12.23) and 2024’s (i.e.15.06.24 & 15.09.24) saw its yields decease to daily lows of 9.30%, 9.35%, 9.52% and 9.53% respectively against its previous day’s closing of 9.33/36, 9.33/43, 9.53/56 and 9.55/57. 

At today’s bill auction, a total amount of Rs. 25.5 billion will be on offer consisting of Rs. 1.5 billion on the 91day, Rs. 7.5 billion on the 182 day and Rs. 16.5 billion on the 364 day maturities. At last week’s auction, weighted averages were seen increasing further to 8.13% and 8.58% on the 182 day and 364 day maturities respectively while all bids received on the 91 day maturity were rejected.

In the secondary bill market, March 2020, October 2020 and January 2021 maturities were seen changing hands at levels of 7.55%, 8.43% and 8.55% respectively. 

The total secondary market Treasury bond/bill transacted volume for 20 January was Rs. 10.03 billion.

In money markets, overnight call money and repo rates averaged at 7.49% and 7.51% respectively as the overnight net liquidity surplus in the system increased further to Rs. 28.56 billion yesterday.

However, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka injected an amount of Rs. 9.50 billion at a weighted average of 7.52% by way of an overnight reverse repo auction.

Rupee trades within narrow range 

The USD/LKR rate on spot contracts was seen trading within a range of Rs. 181.33 to Rs. 181.40 before closing the day at levels of Rs. 181.35/45 against its previous day’s closing levels of Rs. 181.30/35.

The total USD/LKR traded volume for 20 January was $ 72.69 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 181.85/00; 3 months - 182.85/05 and 6 months - 184.40/70.

Share This Article

Facebook Twitter


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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


Today's Columnists

Parliamentary debate on forensic audit reports: Only two constructive suggestions

Monday, 24 February 2020

A debate without substance I spent two afternoons last week in watching the live debate on the forensic audit reports by Sri Lanka’s Parliamentarians. Sadly, there were only two Parliamentarians who made constructive suggestions that should merit a

‘Stutiyi’, my dearest Sri Lankan friends

Monday, 24 February 2020

My heartstrings have been pulled every day during the past few weeks. When following closely my home-country’s all-out efforts to fight the COVID-19 epidemic, I’m always being touched by the most concrete solidarity and the most sincere friendshi

COVID-19 in China: Testing the quality of humanity

Monday, 24 February 2020

Many opinions have been penned across the world over the outbreak of the new strain of influenza. It has killed thousands of innocent Chinese according to official figures. As it came from China, no candlelight vigil has been held in major cities in

Extremes of two world economies – Communist and Capitalist

Monday, 24 February 2020

Up until now, two major economies have dominated the world – the communist economy, militarily controlled and with only state enterprises (or so it was believed outside of their military borders) and the so-called capitalist economy that commenced

Columnists More