Bond yields broadly steady ahead of weekly bills auction

By Wealth Trust Securities

The secondary bond market yields were seen closing the day broadly steady yesterday except for the liquid 15.09.2024 maturity, as its yield was seen hitting an intraday low of 6.17% against its previous day’s closing level of 6.22/28. Further market favourite maturities of 15.12.22, 15.01.23, 01.05.25, 01.02.26 and 15.10.27 were seen changing hands within a steady range of 5.42% to 5.50%, 5.50% to 5.56%, 6.38% to 6.42%, 6.53% and 6.68% to 6.72% respectively. In addition, maturities of 01.07.22, 01.09.23, 2024s (i.e. 15.03.24 & 15.06.24), 01.08.25, 01.06.26 and 15.06.27 were seen trading at levels of 5.45%, 5.75%, 6.15% to 6.23%, 6.52%, 6.60% and 6.69% to 6.70% respectively as well.

Today’s auction will have on offer a total amount of Rs. 29.5 billion, consisting of Rs. 5 billion each of the 91 day and the 182 day maturities and a further Rs. 19.5 billion of the 364 day maturity. Stipulated cut off rates were published as 4.88%, 5.03% and 5.22%. At last week’s auction, the 182 day and 364 day bill weighted average rates decreased by 04 and 13 basis points respectively to 5.18% and 5.32% while the weighted average rate on the 91 day bill remained steady at 5.08%. In secondary bills, August, September, October and November 2020 maturities were seen changing hands at 4.62% to 4.75% while July 2021 maturities at 5.00% to 5.10%.

The total secondary market Treasury bond/bill transacted volume for 13 July was Rs. 14.88 billion. 

In money markets, overnight call money and repo rates averaged 4.54% and 4.55% respectively as the overnight net liquidity surplus in the system stood at Rs. 165.76 billion yesterday.

USD/LKR

In the Forex market, the USD/LKR rate spot contracts were seen closing the day steady at levels of Rs. 185.80/95 yesterday subsequent to trading within the range of Rs. 185.75 to Rs. 185.85.

The total USD/LKR traded volume for 13 July was $ 57.86 million. 

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)