Secondary market bond yields up ahead of weekly auction

Wednesday, 28 August 2013 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities The upward trend in secondary market bond yields resumed yesterday due to selling interest, mainly on the liquid two five year maturities (i.e. 1.4.2018 and 15.8.2018). Volumes changing hands continued to be high as it was seen opening the day at intraday lows of 11.74% and 11.76% and peaking to highs of 11.80% and 11.83% respectively before closing the day lower at 11.78/80 and 11.81/83. In addition, two year maturities continued to change hands at levels of 11.10% while the 364-day bill was seen been quoted at levels of 10.53/58. At today’s weekly Treasury bill auction, a total amount of Rs. 10 billion will be on offer with Rs. 1 billion each on the 91-day and 182-day maturities and Rs. 8 billion on the 364-day maturity. At last week’s auction, all bids were ejected on the 91-day maturity while the weighted averages on the 182-day and 364-day bills dipped by 1 basis point each to 9.65% and 10.55% respectively. Overnight call money and repo rates remained mostly unchanged yesterday to average 8.71% and 8.20% respectively as overnight liquidity stood at a net surplus of Rs. 2.38 billion. Central Bank refrained from conducting any overnight OMO auctions for a second consecutive day, which intern saw Rs. 2.54 billion been deposited at Central Bank’s Repo window rate of 7.00% and Rs. 0.16 billion been accessed from its discount window of 9.00% for the first time since 31 July 2013.