Secondary market bond yields dip ahead of first Treasury bond auction for 2014
Friday, 10 January 2014 00:00
By Wealth Trust Securities
The secondary market Treasury bond yields continued to dip yesterday, as yields of the liquid two 2018 maturities (i.e. 01.04.2018 and 15.08.2018) and the 01.07.2019 maturity were seen hitting intraday lows of 8.62%, 8.75% and 8.80% respectively against its days opening highs of 8.70%, 8.80% and 8.95% ahead of today’s Treasury bond auction, the first for the year and the first in two months. At today’s auction, a total amount of Rs.5 billion will be on offer which will consist of Rs.2.0 Bn, and Rs.3.0 Bn on the 01.07.2019 and 01.01.2029 maturities respectively which pay semiannual coupons of 10.60% and 13.00%. Meanwhile in secondary bill markets, the 364 day bill was quoted at levels of 7.30% to 7.40% while the 182 day bill was at levels of 7.00% to 7.10%.
Meanwhile in money markets, the Open Market Operations (OMO) department of central bank was seen mopping up liquidity for the first time in three days yesterday as it carried out three medium term repo auctions, totaling Rs.28 Bn yesterday for durations of 34 days, 63 days and 77 days at weighted averages of 6.82%, 6.82% and 6.85% respectively, value dated today. Overnight call money and Repo rates were seen averaging 7.36% and 6.82% respectively as surplus liquidity was at Rs 62 Bn yesterday.