Home / Financial Services/ Secondary market bond yields continue to decrease ahead of weekly bill auction

Secondary market bond yields continue to decrease ahead of weekly bill auction

Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 13 September 2017 00:00

By Wealth Trust Securities

The yields in the secondary bond market continued its decreasing trend across the yield curve yesterday on the back of continued foreign buying amidst high activity once again ahead of today’s weekly Treasury bill auction. 

The liquid three 2021’s maturities (i.e. 01.03.21, 01.08.21 and 15.12.21), the two 2022 maturities (i.e. 01.07.22 and 01.10.22), 01.08.24 and 01.08.26 were seen dipping to intraday lows of 10.09%, 10.10% each, 10.20%, 10.23%, 10.35%, and 10.40% respectively from its opening highs of 10.15%, 10.17%, 10.15%, 10.24%, 10.28%, 10.40% and 10.48%. 

In addition, on the long end of the curve, the 01.09.28 and 15.05.30 maturities were seen dipping to daily lows of 10.75% each while on the short end 2019 maturities were seen changing hands within the range of 9.40% to 9.65% as well.

Today’s Treasury bill auction will see an total amount of Rs. 23 billion on offer consisting of Rs. 13 billion on the 182 day bill and a further Rs. 10 billion on the 364 day bill. At last week’s auction, weighted averages were seen dipping to 9.23% and 9.58% respectively.

 The total secondary market Treasury bond/bill transacted volumes for 11 September 2017 was Rs. 14.74 billion.

In money markets, overnight liquidity was seen increasing to Rs. 32.82 billion yesterday as the OMO department of Central Bank drained out Rs 9.95 billion on an overnight basis at a weighted average of 7.27% by way of a Repo auction. Call money and repo averaged 7.98% and 8.08% respectively.

 Rupee dips marginally

 In the Forex market, the USD/LKR rate on the spot rate dipped marginally to close the day at Rs. 152.85/90 against its previous day’s closing levels of Rs. 152.80/85 as mild importer demand outpaced export conversions.

The total USD/LKR traded volume for the 11 September 2017 was $ 46.41 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.55/70; three months - 155.00/10 and six months - 157.20/30.

Share This Article


Today's Columnists

Is Sri Lanka ready for the 2025 growth agenda?

Tuesday, 19 September 2017

The other day the President and Prime Minister launched the 2025 vision for Sri Lanka which was incidentally the third policy statement of the Government since coming to power in 2015. My view is that the continuous changes to policy is important and

Venerable villainy of mercenary monks

Tuesday, 19 September 2017

The picture says it all. The ‘Silredi Sirakaruwan Mudaganime Aramudala’ was not demonstration of piety. It was a bold repudiation of the rule of law by a cabal of venerable villains, brazenly insisting that we Sinhala Buddhists submit to a rule b

Government has accepted jurisdiction of the International Court of Justice over Sri Lanka

Tuesday, 19 September 2017

At the ongoing September 2017 sessions of the UN Human Rights Council, the UK has written to the President of the Council to assert that a long standing dispute it has with the Mauritius cannot be referred to the International Court of Justice becaus

Vision 2025: Part 1: Need for moving from a wish list to a concrete plan

Monday, 18 September 2017

The Unity Government released its newest economic policy statement titled V2025 – the marketing tag for the goals it has set for realisation from 2017 to 2025 – two weeks ago.

Columnists More