Treasury bond yields edge up marginally ahead of weekly bill auction

Wednesday, 10 September 2014 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Yields on Treasury bond maturities increased marginally ahead of today’s weekly Treasury bill auction. Selling interest on bonds with maturities of 1 April 2018, 15 August 2018 and 1 July 2019 was evident as it was seen hitting daily highs of 7.28%, 7.32% and 7.55% against its opening levels of 7.10/13, 7.18/22 and 7.35/40. Furthermore, activity consisting of the liquid 1 July 2022 was seen trading within the levels of 8.08% to 8.15%. However, buying interest at these levels saw yields close the day steady without increasing further. Today’s bill auction will have on offer Rs. 0.5 billion on the 91 day, Rs. 1.5 billion on the 182 day and Rs. 3.0 billion on the 364 day maturities. This is in comparison to last week’s total offered amount of Rs. 8 billion and where weighted averages remained unchanged for a second consecutive week. The 182 day and 364 day maturities recorded weighted averages of 6.28% and 6.30% respectively while 91 day was not offered. Meanwhile in money markets, overnight call money and repo rates averaged 6.70% and 6.51% respectively as surplus liquidity stood at Rs. 36.75 b. Rupee continue to trades within a narrow band In the forex markets the USD/LKR rate remained mostly unchanged to close the day at Rs. 130.21/24. The total USD/LKR traded volumes for 5 September were $ 48.10 million. Some of the forward dollar rates that prevailed in the market were: one month – 130.64; three months – 131.35; and six months – 132.28.

Rupee ends weaker on importer dollar demand

(Reuters) - The Sri Lankan rupee ended a tad weaker on importer dollar demand Tuesday that outpaced inward remittances and selling of the greenback by exporters, dealers said. The rupee ended a tad weaker at 130.22/24 to a dollar, compared with Friday’s close of 130.20/22. “There was importer dollar demand. It’s a temporary move but the appreciation trend is intact,” said a currency dealer asking not to be named. Dealers said they were waiting for the National Savings Bank dollar bond sale proceeds. Foreign investors sold a net 3.45 billion rupees ($26.50 million) worth of government securities in the week ended Sept. 3, official data showed. Sri Lanka’s stock and foreign exchange markets were closed on Monday for a Buddhist holiday.