Home / Financial Services/ Bond yields mostly unchanged ahead of weekly bill auction

Bond yields mostly unchanged ahead of weekly bill auction


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 7 March 2018 00:00


By Wealth Trust Securities

The secondary bond market yields closed broadly unchanged yesterday, with moderate volumes of trades taking place within a narrow band. 

The yields were seen continuing their decreasing trend in the morning hours of trading mainly on the two 2021’s (i.e. 01.03.21 and 01.08.21) maturities to intraday lows of 9.90% and 9.96% respectively. However, selling interest during the latter part of the day saw yields increasing once again to 9.95% and 10.00% respectively, to close the day mostly unchanged against its previous day’s closing levels. 

In addition, the maturities of 01.09.23, 15.03.25 and 15.05.30 were seen changing hands within the range of 10.12% to 10.13%, 10.35% to 10.40% and 10.50% to 10.53% respectively as well. 

In the secondary bill market, the one-year Treasury bill traded within the range of 9.50%-9.60%.

Today’s bill auction will have on offer a total amount of Rs. 30 billion consisting of Rs. 6 billion on the 91 day, Rs. 9 billion on the 182 day and Rs. 15 billion on the 364 day maturities. At last week’s auction, the weighted on the 364 day bill increased to 9.59% while all bids received on the 91 day and 182 day bills were rejected. The total secondary market Treasury bond/bill transacted volumes for 5 March 2018 was Rs. 2.87 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 16.5 billion by way of two repo auctions at weighted averages of 7.26% and 7.35% respectively for periods of one and seven days as the net surplus liquidity in the system stood at Rs. 30.06 billion yesterday. The overnight call money and repo rates averaged 8.15% and 7.56% respectively.

Rupee dips marginally

The USD/LKR rate on spot contracts was seen depreciating yesterday to close the day at Rs. 155.05/12 against its previous day’s closing level of Rs. 154.95/05 on the back of importer dollar demand.

The total USD/LKR traded volume for 5 March 2018 was $ 122.1 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 156.00/10; three months - 157.55/65 and six months - 160.00/10.

 


Share This Article


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

Fruits, flowers and futile triumphalism at Galle Face?

Wednesday, 19 December 2018

Every morning, I play voyeur and watch that nice neighbourhood uncle pluck flowers to pooja-fy his guardian deities. He is quite religious about it. And industrious to boot. The problem, of course, is that he doesn’t restrict himself to his garden.


Will Kyaukpyu overtake Gwadar and Hambantota?

Wednesday, 19 December 2018

China last month signed a $1.3 billion contract for Myanmar’s Kyaukpyu port project. The figures doing rounds in media in the run up to this port deal were as high as $7.9 billion which had ignited enormous curiosities. The Chinese had been negoti


Things to do in a Democracy when you’re dead…

Tuesday, 18 December 2018

In yesterday’s column, I argued a case for not impeaching the chief executive of the coup that has left our country situation in ruins. At the end of a pitched battle between the forces of unconstitutional ambition on one hand and democratic resist


Tweaking the New Inland Revenue Act (Part II)

Tuesday, 18 December 2018

In the backdrop where the recent amendment to the country’s supreme law is called in question, it may be appropriate to recall that the passage of the new Inland Revenue (IR) Act through Parliament was far more controversial. Nevertheless, the new


Columnists More