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Wednesday, 9 October 2019 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Renewed buying interest mainly on the maturities of 2023s and 2024s saw secondary market bond yields decreasing yesterday ahead of today’s weekly Treasury bill auction. 
The yields on the 15.07.23, 15.12.23, 15.06.24 and 15.09.24 maturities decreased to intraday lows of 9.80%, 9.90%, 10.15% and 10.18% respectively against its previous day’s closing levels of 9.85/90, 9.95/00, 10.18/25 and 10.23/25. In addition, the 15.12.21, two 2022s (i.e. 01.07.22 and 01.10.22), 15.06.27 and 15.09.34 maturities were seen trading at lows of 8.75%, 9.20%, 9.25%, 10.43% and 10.71% as well.
At today’s Treasury bill auction, a total amount of Rs. 21.5 billion will be on offer, consisting of Rs. 1.5 billion of the 91-day maturity, Rs. 8 billion of the 182-day maturity and a further Rs. 12 billion of the 364 day maturity.
At last week’s auction, the weighted average yield of the 364 day bill remained steady at 8.41% for a second consecutive week while the 91 day and 182 day bills recorded drops of 02 basis points each to 7.60% and 7.73% respectively.
In the secondary bill market, the 17 January 2020 maturity changed hands at a level of 7.65% yesterday.
The total secondary market Treasury bond/bill transacted volume for 7 October 2019 was Rs.3.87 billion.
Meanwhile in money markets, the OMO Department of the Central Bank refrained from conducting any auctions as the overnight net liquidity surplus in the system decreased to Rs. 11.13 billion yesterday. The overnight call money and repo rates averaged 7.45% and 7.47% respectively.
Rupee continues to appreciate
The USD/LKR rate on spot contracts gained further yesterday to close the day at Rs. 180.30/45 against its previous day’s closing levels of Rs. 180.85/95 on the back of continued selling interest by banks and export conversions.
The total USD/LKR traded volume for 7 October was $ 56 million.
Given are some forward USD/LKR rates that prevailed in the market: one month – 180.95/15; three months – 182.05/35; six months – 183.85/15.
