Secondary market bond yields up marginally ahead of T. Bond auctions

Friday, 8 January 2016 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

In secondary bond markets, selling interest towards the latter part of the day saw yields increase marginally yesterday ahead of today’s Treasury bond auctions. The liquid maturities of 01.11.2019, 01.09.2023 and 01.08.2025 saw its yields increase to daily highs of 9.65%, 10.55% and 10.90% respectively against its days opening lows of 9.57%, 10.50% and 10.75%. rh

Today’s bond auctions, the first for the year 2016 will have on offer an total amount of Rs.20 Billion (Bn), with Rs.2 Bn on a 4.11 year maturity of 15.12.2020, Rs.5 Bn each on a 9.07 year maturity of 01.08.2025 and a 14.04 year maturity of 15.05.2030 and a further Rs.8 Bn on a 25 year maturity of 01.06.2041 which carry semiannual coupons of 9.50%, 11.00% each and 12.00% respectively. 

The previously recorded weighted averages on these maturities were 9.79%, 10.94%, 11.00% respectively while the 25 year maturity will be a new issue. 

In money markets, overnight call money and repo rates remained mostly unchanged to average 6.56% and 6.41% respectively as the surplus liquidity in the system on an overnight basis stood at Rs.78.18 Billion. 

 



Rupee closes the day mostly unchanged  

The USD/LKR rate on spot contracts remained mostly unchanged to close the day at Rs.143.95/05 yesterday as markets were at equilibrium. The total USD/LKR traded volume for 6January  was US $ 178.75 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 144.60/70; 3 Months - 145.70/90 and 6 Months - 147.75/85.

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