Bond yields decrease marginally ahead of weekly bill auction

Wednesday, 2 January 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields decreased marginally yesterday ahead of today’s weekly Treasury bill auction, where an total amount of Rs. 15.5 billion will be on offer consisting of Rs. 7 Billion on the 182 day maturity and Rs. 8.5 billion on the 364 day maturity. At the last auction, the weighted average yields of both the 182 day and 364 day bills decreased by 04 basis points each to 9.99% and 11.20% respectively.

In the secondary bond market, the liquid maturities consisting of the 2021’s (i.e. 01.08.21, 15.10.21 and 15.12.21), two 2023’s (i.e. 15.05.23 and 15.07.23) and 15.06.27 were seen changing hands at levels of 11.40% to 11.50%, 11.60% to 11.62% and 11.68% to 11.74% respectively.

The total secondary market Treasury bond/bills transacted volume for 1 January was Rs. 8.92 billion.

In the money market, the OMO Department of the Central Bank was seen infusing liquidity by way of an overnight and a seven-day term reverse repo auction for successful amounts of Rs. 15 billion and Rs. 10 billion, at weighted average yields of 8.99% and 9.00% as the net liquidity shortfall stood at Rs. 78.64 billion. The overnight call money and repo rates averaged 8.98% and 9.00% respectively.

Rupee appreciates marginally

In the Forex market, the USD/LKR rate on spot contracts appreciated marginally yesterday to close the day at Rs. 182.80/00 against its previous day’s closing levels of Rs. 182.90/00 subsequent to trading at a high of Rs. 182.00 and low of Rs. 183.05.

The total USD/LKR traded volume for 1 January was $ 40.78 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month – 183.70/10; 3 Months – 185.60/00, 6 Months – 188.60/10.