Bond yields edge up ahead of weekly Treasury bill auction

By Wealth Trust Securities

The secondary market bond yields edged up yesterday on the back of improved activity levels. Activity mainly centred on the 2022’s (i.e. 15.11.22 and 15.12.22), 15.12.23, 15.09.24, 01.05.25 and 01.02.26 maturities at levels of 5.60% to 5.67%, 5.96% to 6.00%, 6.30%, 6.40% to 6.50% and 6.63% respectively. In addition, the very short end of the yields curve saw the 01.03.21 maturity change hands at 4.58% to 4.60% while the January, February, March and June 2021 Treasury bill maturities changed hands at levels of 4.60% to 4.64%, 4.64%, 4.63% and 4.80% respectively as well.

Today’s weekly Treasury bill auction will have Rs. 40 billion on offer once again, broken down to Rs. 5 billion on the 91-day, Rs. 11 billion on the 182-day and a further Rs. 24 billion on the 364-day maturities. The stipulated cut-off rates on the 91-day, 182-day and 364-day maturities were given as 4.60%, 4.70% and 4.97% respectively. At its previous week’s auction, the total accepted volume was seen falling short of the total offered volume for a second consecutive week.        

In the money market, overnight surplus liquidity was recorded at Rs. 156.57 billion yesterday as overnight call money and repo remained steady to average 4.54% and 4.59% respectively. 

Rupee broadly unchanged

The USD/LKR rate on spot contracts was seen closing the day broadly unchanged yesterday at Rs. 184.50/60 yesterday against its previous day’s closing of Rs. 184.45/55.

The total USD/LKR traded volume for 9 November was $ 43 million.   

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