Positive momentum in bond market continues ahead of weekly bill auction

By Wealth Trust Securities

The positive momentum in the secondary bond market continued yesterday as well, with the liquid maturities of 15.03.23 and 01.08.24 changing hands at lows of 9.85% and 9.94% in comparison to the previous day’s closing levels of 9.90/92 and 9.95/00. 

Furthermore, activity was also witnessed consisting of the 2019s (i.e. 01.07.19 and 15.09.19), 2020s (i.e. 01.05.20 and 15.12.20), 2021s (i.e. 01.03.21 and 01.05.21), 01.10.22 and 01.08.26 maturities within the range of 9.13% to 9.20%, 9.48% to 9.50%, 9.55% to 9.62%, 9.80% to 9.83% and 10.10% to 10.13% respectively.

Meanwhile, today’s bill auction will have on offer a total amount of Rs. 20.5 billion consisting of Rs. 5 billion of the 91 day, Rs. 3 billion of the 182 day and Rs. 12.5 billion of the 364 day maturities. At last week’s auction, the weighted average yield of the 91 and 364 day maturities deceased by seven and four basis points respectively to 8.17% and 9.23% with all bids for the 182 day maturity being rejected.

The total secondary market Treasury bond/bill transacted volumes for 6 August 2018 was Rs. 3.40 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds. In money markets, overnight call money and repo rates averaged 8.30% and 8.16% respectively as the net liquidity surplus increased further to Rs. 48.67 billion.

Rupee remains steady  

The USD/LKR rate in the Forex market remained steady to close the day at Rs. 159.77/82 on spot contracts as the market was at an equilibrium.

The total USD/LKR traded volume for 6 August 2018 was $ 91.75 million.

Given below are some forward USD/LKR rates that prevailed in the market. 

1 Month        -             160.60/80

3 Months      -             162.20/40

6 Months      -             164.65/85