Secondary market yields dip ahead of bond auctions
Tuesday, 21 April 2015 00:54
-
- {{hitsCtrl.values.hits}}
By Wealth Trust Securities
In secondary bond markets yesterday, yields were seen dipping marginally across the yield curve on continued buying interest ahead of two Treasury Bond auctions due today.
Yields on the liquid maturities of 15 May 2017, 1 June 2018, 15 September 2019, 1 August 2021, 1 September 2023 and 15 March 2025 was seen dipping to intraday lows of 7.42%, 8.16%, 8.33%, 8.80%, 9.25% and 9.58% respectively against its days opening highs of 7.47%, 8.25%, 8.38%, 8.85%, 9.35% and 9.68%.
At today’s auction, Rs. 3 billion each will be on offer on a 3.01 year maturity of 1 June 2018 and a 7.02 year maturity of 1 July 2022. The previously concluded bond auction of 15 September 2019 saw all bids been rejected for the first time in five years. Meanwhile, in secondary market bills continued buying interest saw November 2015 maturities change hands within the range of 6.50% to 6.55%.
In money markets yesterday, overnight call money and repo rates remained steady to average 6.19% and 6.05% respectively as surplus liquidity stood at a high of Rs. 119.87 billion.
Rupee steady in thin trade
Meanwhile in Forex markets yesterday, the USD/LKR rate on one week and two week forward contracts remained steady at Rs. 133.60/70 and Rs. 133.85/95 in thin trade. The total USD/LKR traded volume for 17 April was at $ 12 million.
Some of the forward dollar rates that prevailed in the market were: one month – 134.20; three months – 135.20; and six months – 136.75.
