Bond yields broadly steady ahead of Treasury bond auctions

Friday, 30 October 2015 00:44 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in secondary market bonds moderated yesterday as yields was seen closing the day steady ahead of Today’s Treasury bond auctions. A limited amount of activity was witnessed on the two 2019 maturities (i.e. 1 July 2019 and 15 September 2019) within the range of 8.75% to 8.85%, the 1 May 2020 within 8.95% to 9.05% and on the long end of the curve, the 15 March 2035 within the range of 10.82% to 10.87% yesterday. In secondary market bills, the 182 day bill was seen changing hands within the range of 6.85% to 6.90% as well. gyik

Today’s bond auctions, the second round of auctions for the week will see Rs 3 billion each on offer on a 4.06 year maturity of 1 May 2020, a 8.02 year maturity of 1 January 2024 and a 14.06 year maturity of 15 May 2030.

The previously concluded auctions on these maturities saw the 1 May 2020 and the 15 May 2030 record weighted averages of 9.58% and 10.96% respectively while all bids for the 1 January 2024 were rejected.

This was ahead of inflation numbers due today for the month of October. At its September release, the point to point was seen recording a historical low of a negative 0.30% while its annualised average dipped to 0.70% as well.

In money markets, surplus liquidity remained high at Rs.72.69 billion as overnight call money and repo rates remained steady to average 6.35% and 6.09% respectively.

Rupee loses ground once again

Meanwhile in Forex markets yesterday, the USD/LKR rate depreciated once again to close the day Rs. 140.95/00 against previous day’s closing of Rs 140.85/90 on back of importer demand. The total USD/LKR traded volume for 28 October was $ 104.18 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 141.45/55; three months – 142.45/55; six months – 143.85/00.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.