Home / Financial Services/ Bond yields move higher ahead of weekly bill auction

Bond yields move higher ahead of weekly bill auction


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 12 September 2018 00:00


 

  • CBSL injects liquidity for the first time in close to 5 months

By Wealth Trust 

Securities Ltd. 

Secondary bond market yields were seen increasing for a third connective day on the back of average volumes changing hands driven by foreign and local selling interest. 

This resulted in yields on the maturities of 15.10.21, 15.07.23, 01.08.24, 15.06.27 and 01.09.28 increasing to intraday highs of 9.76%, 10.05%, 10.23%, 10.37% and 10.48% respectively against its previous day’s closing levels of 9.65/75, 9.98/03, 10.10/17, 10.27/37 and 10.28/38. 

Furthermore, the maturities of 15.11.18, 01.05.20, three 2021’s (i.e. 01.03.21, 01.05.21 and 01.08.21), 01.10.22 and 15.03.23 were seen changing hands at levels of 8.05%, 9.28% to 9.35%, 9.58% to 9.70%, 9.95% and 10.10% respectively as well. In the secondary bill market, the 12 April 2019 maturity changed hands within the range of 8.80%-8.84%

Today’s weekly Treasury bill auction will have on offer a total amount of Rs. 16.5 billion consisting of Rs. 4 billion of the 91 day maturity and Rs. 12.5 billion on the 364 day maturity. At last week’s auction, the weighted averages on the 182 day and 364 day maturities decreased by three and two basis points respectively to 8.00% and 8.97%.

The total secondary market Treasury bond/bill transacted volumes for 10 September 2018 was Rs. 4.29 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds. 

In money markets yesterday, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen injecting liquidity to the system by way of a reverse repo auction for the first time since 17 April 2018. 

An amount of Rs. 8.4 billion was successfully infused out of a total offered amount of Rs. 30 billion for a period of 14 days at a weighted average of 8.09%, valued today. Overnight call money and repo rates remained mostly unchanged to average 7.90% and 8.00% respectively as net surplus liquidity increased to Rs. 18.49 billion.

Rupee closes mostly unchanged   

 The USD/LKR rate on spot contracts was seen closing the day at Rs. 162.30/40 against its previous day’s closing levels of Rs. 162.35/50.

The total USD/LKR traded volume for 10 September 2018 was $ 41.25 million. Given below are some forward USD/LKR rates that prevailed in the market. 

 1 Month       -               163.10/30

3 Months      -              164.75/00

6 Months      -              167.15/45

 


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

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


Columnists More