Secondary market Bond yields increase marginally ahead of primary auction

By Wealth Trust Securities

Secondary market Bond yields were seen increasing marginally on Monday in thin trade ahead of weekly Treasury Bill auction due on 3 June.

At this auction, a total amount of Rs. 26 billion will be on offer with Rs. 8 billion each on the 91 day and 182 day Bills and Rs. 10 billion on the 364 day Bill. At last week’s auction, the weighted averages on 91 day and 182 day Bills dipped only by one basis point each to 6.07% and 6.18% respectively while weighted average on 364 day Bill dipped by one basis points to 6.29%.

In secondary Bond market, selling interest saw yields on liquid maturities of 1 June 2018, 15 September 2019, 1 May 2020, 1 August 2021, 1 July 2022, 1 September 2023 and 15 March 2025 increasing to daily highs of 7.58%, 7.96%, 8.19%, 8.36%, 8.49%, 8.66% and 8.95%  respectively against its previous day’s closing levels of 7.54/56, 7.91/93, 8.16/18, 8.30/34, 8.42/47, 8.62/64 and 8.87/90.

However, longer tenure Bond maturities of 15 March 2035 and 1 March 2045 were seen quoted lower, within the range of 9.75/85 and 10.75/80 respectively against its previous day’s closing levels of 9.75/00 and 10.90/95.

Meanwhile in money markets on Monday, overnight call money and repo rates remained steady to average at 6.10% and 5.79% respectively as surplus liquidity stood at Rs. 97.05 billion.

Rupee appreciates 

In Forex markets on Monday, the rupee on active three month forward contracts appreciated considerably to close the day at Rs. 136.50/80 against its previous day’s closing of Rs. 137.70/80. The total USD/LKR traded volume on 29 March stood at $ 14 million.