Bond yields broadly unchanged ahead of weekly bill auction

Wednesday, 27 December 2017 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary bond market yields remained broadly unchanged yesterday, with moderate volumes of trades taking place within a narrow band. 

Buying interest of the 01.08.26 and 15.06.27 maturities resulted in its yields dipping to intraday lows of 10.10% and 10.15% against its previous day’s closing levels of 10.12/20 and 10.18/25. Furthermore, the 2021 maturities were seen changing hands within a range of 9.66% to 9.75% as well. 

Today’s bills auction will have on offer a total amount of Rs. 12.5 billion, consisting of Rs. 4 billion of the 182 day maturity and a further amount of Rs. 8.5 billion of the 364 day maturity. Once again the 91 day bill will not be on offer. 

At last week’s auction, the weighted averages of the 182 day and 364 maturities decreased by eight and 12 basis points respectively to 8.40% and 8.92% while the weighted average of the 91 day maturity stood at 7.69%. 

The total secondary market Treasury bond/bill transacted volumes for 22 December 2017 was Rs. 1.52 billion.

In the money market, overnight call money and repo rates remained mostly unchanged to average 8.15% and 7.51% respectively as the net surplus liquidity in the system stood at Rs. 16.76 billion. The OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs. 12 billion at a weighted average of 7.25%, by way of an overnight repo auction. 


Appreciating trend 

in rupee continues

The USD/LKR rate on spot contracts was seen appreciating further yesterday, to close the day at Rs. 152.70/75 against its previous day’s closing levels of Rs. 152.85/90, on the back of continued exporter dollar conversions.

The total USD/LKR traded volume for 22 December was $ 85.00 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.80/95; three months - 155.55/65 and six months - 158.05/15.