Secondary market bond yields up marginally ahead of weekly bill auction

Tuesday, 10 November 2015 00:01 -     - {{hitsCtrl.values.hits}}

Rupee hits a fresh low once again

By Wealth Trust Securities

The secondary bond market saw yields increase marginally yesterday in a shortened trading week on the back of thin volumes changing hands ahead of Wednesday’s weekly Treasury bill auction.

Selling interest on the liquid maturities of 01.05.2020, 01.08.2021, 01.10.2022 and 15.03.2025 saw its yields change hands within the range of 8.60% to 8.63%, 8.80% to 8.85%, 9.00% to 9.05% and 9.08% to 9.10% respectively against their previous day’s 05-1closing levels of 8.51/54, 8.72/75, 8.95/98, 9.00/10.

Meanwhile, the weekly Treasury bill auction will see an total amount of Rs.20 billion on offer consisting of Rs. 8 billion on the 182 day and Rs. 12 billion on the 364 day maturities while the 91 day maturity will not be auction for the first time 13 weeks.

At last week’s auction, weighted averages decreased across the board for a fourth consecutive week to record 6.44%, 6.87% and 7.00% respectively on the 91 day, 182 day and 364 day maturities.

In secondary market bills, durations centering the 182 day and 364 day bills were quoted within the range of 6.50% to 6.65% and 6.80% to 6.95% respectively.

In money markets, surplus liquidity continued to remain high at Rs.110.07 billion yesterday as call money and repo rates remained mostly unchanged to average 6.31% and 6.12% respectively.

Rupee hits fresh low.

Meanwhile in Forex markets, the rupee was seen hitting a fresh low of Rs. 141.95 yesterday on the back of continued importer demand to close the day at levels of Rs. 141.95/05 against its previous day’s closing levels of 141.50/60. The total USD/LKR traded volume for 6 November was $ 99.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 142.40/50; three months – 143.30/45 and six months – 144.70/80.

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