Bond yields decrease ahead of weekly bill auction

Wednesday, 12 June 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields decreased marginally yesterday, consisting mainly of the liquid maturities of 15.03.22, 15.03.23, 15.03.24, 01.08.26 and 15.01.27 to lows of 9.98%, 10.18%, 10.20%, 10.55% and 10.58% respectively against its previous day’s closing levels of 9.95/05, 10.20/30, 10.35/40, 10.55/65 and 10.60/70. Furthermore, limited activity was also witnessed of the 01.05.20, three 2021’s (i.e.01.08.21, 15.10.21 & 15.12.21) and 01.10.22 maturities at levels of 8.90%, 9.63% to 9.75% and 10.00% to 10.05%.

At today’s Treasury bill auction, a total amount of Rs. 19 billion will be on offer, consisting of Rs. 3 Billion on the 91 day, Rs. 5 Billion on the 182 day and Rs. 11 billion on the 364 day maturities. At last week’s auction, the weighted average yields of the 182 day and 364 day bills remained steady at 8.63% and 8.88% respectively while the 91 day maturity recorded a weighted average yield of 8.38%.

The total secondary market Treasury bond/bill transacted volumes for 10 June was Rs. 9.20 billion.

In money markets, the overnight call money and repo rates averaged 7.93% and 8.07% respectively as the OMO Department of the Central Bank was seen draining out an amount of Rs. 15.00 billion on an overnight basis by way of a repo auction at a weighted average yield of 7.84%. Further, it also drained out an amount of Rs. 6.25 billion by way of an eight day repo auction at a weighted average rate of 8.10%, value today, with the net liquidity surplus standing at Rs. 36.43 billion.

Rupee remains mostly unchanged

The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at Rs. 176.45/55.

The total USD/LKR traded volume for 10 June 2019 was $ 91.10 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 177.23/33; three months -178.88/98 and six months - 180.85/95.