Secondary market bond yields increase following auction announcements

Tuesday, 23 August 2016 00:02 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary market bond yields increased yesterday on the back of moderate volumes, following the announcement of three Treasury bond auctions to the tune of Rs. 45 billion.

Yields on the 01.08.24, 01.08.25 and 01.08.26 maturities were seen increasing to intraday highs of 12.30%, 12.55% and 12.60% Outside-lead-2-Treasury-Bills-97 respectively against its opening lows of 12.23%, 12.50% and 12.53%. In addition, 2018 maturities were seen changing hands within the range of 11.00%-11.19%.

Meanwhile, in money markets, the overnight call money and repo rates remained mostly unchanged to average 8.40% and 8.50% as the Open Market Operations (OMO) department of the Central Bank injected Rs. 15.00 billion at a weighted average of 8.39% by way of an overnight reverse repo auction.

The liquidity in the system stood at a net deficit of Rs. 17.33 with a further amount of Rs. 16.91 billion being accessed from the Standard Lending Facility Rate of 8.50% (SLFR) against a deposit amount of Rs. 14.58 billion at its Standing Deposit Facility Rate (SDFR) of 7.00%.

Rupee remains steady

The USD/LKR rate on spot, spot next and one-week forward contracts remained steady for a sixth consecutive day to close at Rs. 145.50/55, Rs. 145.54/58 and Rs. 145.72/78 respectively.

The total USD/LKR traded volume for 19 August 2016 was $ 46.00 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 146.42/45; three months - 148.05/15 and six months - 150.05/25.

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