Secondary market bond yields edge up marginally ahead of weekly auction

Wednesday, 3 July 2013 00:02 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Secondary market bond yields edged up marginally yesterday in thin trade ahead of this week’s Treasury Bill auction due today. At the auction, the offered amounts were equal to the past four weeks with Rs. 1 b on offer on the 91 day, Rs. 2 b on the 182 day and Rs. 9 b on the 364 day maturities. At last week’s auction weighted averages (WAvg) dipped on the 182 day and 364 day maturities by 10 basis points (bp) and 19 bp respectively to 9.70% and 10.66% while the WAvg on the 91 day maturity remained unchanged at 8.66%. In secondary bond markets, activity once again surrounded the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) as its yields were seen closing the day marginally higher at levels of 11.33/36 and 11.40/45 respectively in comparison to its previous days closings levels subsequent to hitting intraday highs of 11.35% and 11.42%. In addition the eight year maturity was seen been quoted at 11.50/65 while the 364 day bill closed the day at 10.60/64 in secondary markets. Liquidity remains at a two month high In money markets, overnight surplus liquidity edged up marginally to Rs. 38.6 b yesterday as all efforts to mop up liquidity on a term basis been unsuccessful. Call money and Repo rates averaged 8.70% and 8.24% respectively while an amount of Rs. 35 b was mopped up on an overnight basis at a WAvg of 7.79% with a further Rs. 3.61 b being deposited at CBSL’s Repo window of 7.00%. Rupee remains steady The rupee remained steady yesterday in very thin volumes once gain to close the day at Rs 130.60/70. The total USD/LKR volume for the previous day (1 July 2013) was at a three week low of US$ 33.80 million.

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