Secondary market bond yields seesaw during day ahead of weekly auction
Tuesday, 28 April 2015 00:47
By Wealth Trust Securities
Secondary market bond yields were seen increasing in morning hours of trading yesterday, following the announcement of two Treasury bond auction due on Wednesday 29 April.
Selling interest on the liquid maturities of 1 June 2018, 15 August 2019, 1 August 2021, 1 July 2022, 1 September 2023 and 15 March 2025 saw its yields increase to intraday highs of 8.00%, 8.20%, 8.50%, 8.50%, 8.85% and 9.10% respectively.
However, buying interest from this point onwards saw yields dip once again to hit intraday lows of 7.85%, 8.10%, 8.38%, 8.45%, 8.65% and 8.90%.
Meanwhile at today’s weekly bill auction, held a day prior due to a shortened trading week, a total amount of Rs. 21 billion will be on offer consisting of Rs. 3 billion on the 91 day, Rs. 6 billion on the 182 day and Rs. 12 billion on the 364 day maturities.
At last week’s auction, weighted averages decreased across all three maturities to record 6.19%, 6.35% and 6.50% respectively.
Meanwhile in money markets, overnight call money and repo rates decreased further to average 6.12% and 5.94% respectively as surplus liquidity stood at a high of Rs. 121.83 billion.
Rupee dips marginally
Meanwhile in forex markets, the active one month forward contract dipped marginally to close the day at Rs. 134.75/00 on the back of importer demand. The total USD/LKR traded volume for 24 April was at $ 50.20 million.
Given are some forward dollar rates that prevailed in the market: three months – 135.72 and six months – 137.07.