Secondary market bond yields increase further ahead of weekly bill auction

Wednesday, 5 October 2016 00:01 -     - {{hitsCtrl.values.hits}}

untitled-4By Wealth Trust Securities

Secondary market bond yields were seen increasing further yesterday ahead of today’s weekly Treasury bills auction. 

The liquid maturities of 01.03.21, 01.10.22, 01.08.24, 01.08.26 and 15.05.30 were seen hitting intraday highs of 11.10%, 11.25%, 11.45%, 11.48% and 11.90% respectively against their previous day’s closing levels of  10.90/00, 11.15/23, 11.20/25, 11.27/32 and 11.60/75 on the back of continued selling interest. 

In addition, two-way quotes on the rest of the yield curve were seen increasing as well. This was ahead of today’s weekly Treasury bill auction where Rs. 26 billion will be on offer consisting of Rs. 8 billion each on the 91 day and 182 day maturities and a further Rs. 10 billion on the 364 day maturity. At last week’s auction, weighted averages decreased across the board to record 8.55%, 9.39% and 10.11% respectively.

Meanwhile, in money markets, the injection of Rs. 55 billion on an overnight basis at a weighted average rate of 8.49% by the Open Market Operations (OMO) department of the Central Bank saw overnight call money and repo rates averaging 8.42% and 8.74% respectively yesterday.

 Rupee dips marginally

 The USD/LKR rate on its spot contract was seen dipping marginally to close the day at Rs. 146.69/75 against its previous day’s closing of Rs. 146.60/70 on the back of importer demand. The total USD/LKR traded volume for 3 October 2016 was $ 98.97 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 147.55/70; three months - 149.15/40 and six months - 151.55/80.