Bond yields decrease marginally ahead of weekly bill auction

By Wealth Trust Securities

The secondary market bond yields were seen decreasing marginally yesterday on the back of moderate trading. 

The liquid maturities of 15.03.23 and 01.09.28 were seen hitting intraday lows of 10.40% and 10.67% respectively against its previous day’s closing levels of 10.40/48 and 10.68/78. 

In addition, the 2018, 2020 and 2021 maturities were seen changing hands at levels of 8.55% to 8.90%, 9.95% and 10.05% to 10.20% respectively, while two way quotes along the rest of the yield curve were seen decreasing marginally as well. Today’s Treasury bill auction will see an total amount of Rs. 26 billion on offer consisting of Rs. 7 billion each on the 91 day and 182 day bills and a further Rs. 12 billion on the 364 day bill. At last week’s auction, weighted averages were seen increasing to 8.33%, 8.90% and 9.70% respectively.

The total secondary market Treasury bond/bill transacted volume for 21 May 2018 was Rs. 9.03 billion.

 In money markets, overnight liquidity was seen broadly steady at Rs. 5.62 billion yesterday as the OMO Department of the Central Bank drained out Rs. 8 billion on an overnight basis at a weighted average of 7.35% by way of a repo auction. Overnight call money and repo averaged 7.92% and 7.93% respectively. 

Rupee dips marginally

 In the Forex market, the USD/LKR rate on the spot contract dipped marginally to close the day at Rs. 158.00/10 against its previous day’s closing levels of Rs. 157.85/95 as mild importer demand outpaced export conversions.

The total USD/LKR traded volume for 21 May 2018 was $ 47.92 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 158.85/00; three months - 160.35/55 and six months - 162.60/90.