Bond yields decrease ahead of T-bond auctions

Friday, 11 June 2021 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields were seen decreasing yesterday on the back of increased activity ahead of today’s Treasury bond auctions. The liquid maturities of 15.12.22 and 15.11.23, saw its yields hit intraday lows of 5.67% and 6.26% respectively against its previous day’s closing levels of 5.70/78 and 6.28/33.

Furthermore, activity was also witnessed on the maturities of 01.10.22, 15.11.22, 15.01.23, 15.03.23 and 15.01.26 at levels of 5.65% each, 5.70% to 5.77%, 5.90% to 5.96% and 7.32% to 7.33% respectively. In the secondary bill market, 10 September maturity was traded at 5.13%.

Today’s auction will have on offer a total amount of Rs. 25 billion, consisting of Rs. 15 billion of the 15.01.2026 maturity and Rs. 10 billion of the 01.05.2028 maturity. The maximum yield rate for acceptance for the said maturities was published at 7.33% and 8.05% respectively. The weighted average yields at the bond auctions conducted on 1 June were 6.35% and 8.00% for the maturities of 15.11.2023 and 01.07.2028 respectively.

The total secondary market Treasury bond/bill transacted volume for 9 June was Rs. 16.04 billion.

In money markets, the net liquidity surplus increased to Rs. 110.72 billion yesterday with an amount of Rs. 116.82 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 6.10 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo stood at 4.77% and 4.80% respectively.

USD/LKR

The Forex market continued to remain inactive yesterday. The total USD/LKR traded volume for 9 June was $ 40.55 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)