Bond yields remain mostly unchanged ahead of weekly bill auction

Wednesday, 6 February 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields remained mostly unchanged yesterday on the back of moderate volumes changing hands, ahead of today’s weekly Treasury bill auction.

Trades were witnessed on the maturities of two 2021s (i.e. 01.08.21 and 15.12.21), three 2023s (i.e. 15.05.23, 15.07.23 and 15.12.23), 01.08.26, two 2027s (i.e. 15.01.27 and 15.06.27) and 01.09.28 at levels of 10.80% to 10.88%, 10.90% to 11.03%, 11.15% to 11.17%, 11.20% to 11.25% and 11.25% to 11.27% respectively.

At today’s auction, a total amount of Rs. 24 billion will be on offer consisting of Rs. 2 billion of the 91-day maturity, Rs. 6 billion of the 182-day maturity and Rs. 16 billion of the 364-day maturity.

At last week’s auction, the weighted average yield of the 364-day bill declined by one basis point to 10.69% while all bids received on the 182-day bill was rejected. The 91-day bill will be on offer for the first time in 10 weeks. The last recorded weighted average on the 91-day bill was 10.01%.

The total secondary market Treasury bond/bill transacted volumes for 1 February was Rs. 5.34 billion.In the money market, the OMO Department of the Central Bank of Sri Lanka injected an amount of Rs. 30 billion at a weighted average of 9.00%, by way of an overnight reverse repo auction as the net liquidity shortfall in the system stood at Rs. 98.95 billion yesterday. The overnight call money rate averaged at 8.99%.

Rupee dips again

The USD/LKR rate on spot contracts depreciated once again yesterday to close the day at levels of Rs. 178.25/45 against its previous day’s closing levels of Rs. 176.80/10 on the back of buying interest by banks.

The total USD/LKR traded volume for 1 February was $ 102.64 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 178.05/45; three months – 181.00/40; six months – 184.00/40.