Secondary market bond yields mostly unchanged ahead of weekly Treasury bill auction
Tuesday, 10 June 2014 00:34
By Wealth Trust Securities
Secondary bond markets remained bullish yesterday with considerable volumes continuing to change hands as yields were seen closing the day steady ahead of this week’s Treasury bill auction to be held today, 10 June, due to a shortened trading week.
Activity mainly surrounded the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) and the two 2019 maturities (i.e. 1 July 2019 and 1 November 2019) as it was seen changing hands within the ranges of 8.20% to 8.25%, 8.28% to 8.31%, 8.69% to 8.74% and 8.70% to 8.73% respectively.
In addition, a limited amount of activity was witnessed on 2017 maturities within the range of 7.64% to 7.68%, the 2021 maturities within 9.35% to 9.37% and 2022 maturities within 9.82% to 9.84%.
Today’s bill auction will have on offer Rs. 1.0 billion on the 91 day, Rs. 2 billion on the 182 day and Rs. 9.0 billion on the 364 day maturities. This is in comparison to last week’s total offered amount of Rs. 10 billion and where weighted averages declined by one basis point each on the 91 day and 364 day maturities to 6.55% and 7.01% respectively while the weighted average on the 182 day declined by two basis points to 6.73%.
Meanwhile, in money markets, overnight call money and repo rates averaged 6.96% and 6.53% respectively as surplus liquidity in money markets stood at Rs. 20.51 b yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 12.53 b on a four-day basis at a WAvg of 6.61% while a further amount of Rs. 7.98 b was deposited at its Standing Deposit Rate (SDR) of 6.50%.
Rupee remains stable
Meanwhile, in Forex markets yesterday, the USD/LKR rate remained mostly unchanged to close the day at Rs. 130.26/28. The total USD/LKR traded volume for the previous day 6 June 2014) stood at $ 92.14 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.69; three months -131.54; and six months – 132.74.