Home / Financial Services/ Second weekly steep decline on 364-day bill

Second weekly steep decline on 364-day bill

Comments / {{hitsCtrl.values.hits}} Views / Thursday, 16 May 2019 00:00



  • Bond yields follow suit

By Wealth Trust Securities

The benchmark 364-day bill was seen recording its second consecutive week of steep declines at its auction conducted yesterday. The drop was recorded at 26 basis points to 9.18% following its previous week’s dip of 37 basis points while the 182-day registered a dip of 12 basis points to 8.88%. However, the 91-day bill was seen recording an increase for the first time in 12 weeks by a marginal 1 basis point to 8.52%. The bids to offer ratio was at 3.88:1. 

In the secondary bond market yesterday, yields were seen decreasing leading to the auction and subsequent to its results, mainly on the liquid maturities of two 2021’s (01.03.21 and 01.08.21), 15.03.23 and 15.03.24 to intraday lows of 9.65%, 9.75%, 10.35% and 10.41% against its opening highs of 9.70%, 9.90%, 10.45% and 10.52%. In addition, the 15.10.21, 15.05.23, two 2026’s (i.e. 01.06.26 and 01.08.26), 15.01.27 and 01.05.29 maturities were seen changing hands at levels of 9.85% to 10%, 10.46%, 10.72% to 10.73%, 10.73% to 10.78% and 10.86% to 10.90%, respectively, as well.

The total secondary market Treasury bond/bill transacted volumes for 14 May was Rs. 13.40 billion. 

In money markets, the overnight net surplus liquidity in the system remained Rs. 25.05 billion yesterday as the Open Market Operations (OMO) Department of the Central Bank continued to drain out liquidity by way of two days, six days and eight days repo auctions at weighted averages ranging from 8.55% to 8.59%. The overnight call money and repo rates averaged 8.41% and 8.49%, respectively.

Rupee appreciates 

The USD/LKR rate on spot contracts appreciated yesterday to close the day at levels of Rs.176.20/30 against its previous day’s closing levels of Rs.176.80/90 on the back of selling interest by banks.

The total USD/LKR traded volume for 15 May was $ 48.36 million Some of the forward USD/LKR rates that prevailed in the market were 1 month – 177.00/30; 3 months – 178.90/20 and 6 months – 181.50/90.


Sri Lanka dollar bonds fall on sectarian violence

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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Trendvertising: The new world of communication in a hashtag world

Tuesday, 20 August 2019

Rahul Bose, an Indian actor, caught a lot of attention for a video post that went viral, where he complained about the price of bananas during his stay at a five-star hotel in Mumbai. As he explained in his story – he went to the gym at his hotel w

Company Law intertwined with Income Tax – Understanding the nexus! Part II

Tuesday, 20 August 2019

A comparison and analysing the impact of corresponding provisions of Companies Act No. 7 of 2007 and Inland Revenue Act No. 24 of 2017 reveals invaluable insights corporate management must be aware of in day-to-day management activities as well as st

Will ‘10 February’ be repeated?

Tuesday, 20 August 2019

Whilst Sri Lanka is in election mode, the thought crossing every Sri Lankans mind is, ‘Will the 10 February 2018 elections behaviour be repeated?’ given the head-start that ‘Brand Gota’ has got. Whilst many are speculating who will be the fig

Shanta Devarajan: Economist who cannot get disconnected from his motherland

Monday, 19 August 2019

For me, Shanta Devarajan, formerly the Acting Chief Economist of the World Bank Group succeeding the Nobel Laureate Paul Romer and presently Professor at Georgetown University, USA, was a legend by himself. When I met him in early part of the new mil

Columnists More

Special Report