Bond yields increase ahead of T-bill auctions

By Wealth Trust Securities

The secondary market bond yields were seen increasing yesterday ahead of today’s Treasury bill auctions.

Once again, activity centred on the liquid maturities of 15.11.23 and 01.12.24 as its yields were seen increasing to intraday highs of 7.00% and 8.02% respectively against its previous day’s closing level of 6.75/90 and 7.85/95. In addition, the 15.09.24 maturities traded at 8.00% as well.

At today’s bill auction, a total volume of Rs. 56.5 billion will be on offer, Rs. 3 billion more than its previous weeks total offered volume. This will consist of Rs. 16 billion on the 91-day maturity, Rs. 20 billion on the 182-day maturity and Rs. 20.5 billion on the 364-day maturity. The stipulated cut off rate on the 364-day maturity was increased by 55 basis points to 5.93% while the maximum yield rates of the 91-day and 182-day maturities will be decided below the level of the 364-day maturity. At last week’s auction, the total accepted volume decreased to a low of 45.16% of its total offered volume while the weighted average rates on 91-day and 182-day maturities increased by 6 and 7 basis points respectively to 5.33% and 5.34%. All bids received on the 364-day maturity were rejected. 

The total secondary market Treasury bond/bill transacted volume for 23 August 2021 was Rs. 0.25 billion.  

In money markets, the net liquidity surplus decreased to Rs. 10.26 billion yesterday with an amount of Rs. 117.82 billion been deposited at Central Banks SDFR of 5.00% against an amount of Rs. 107.56 billion withdrawn from Central Banks SLFR of 6.00%. The weighted average rates on call money and repo remained steady at 5.77% and 5.75% respectively.

USD/LKR  

In Forex markets, the overall market continued to remain inactive yesterday.

The total USD/LKR traded volume for 23 August 2021 was $ 18.00 million.  

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