Bond yields remain steady ahead of weekly bill auction

By Wealth Trust Securities

The secondary bond market activity picked up marginally yesterday during morning hours of trading and phased out towards the latter part of the day with yields closing the day broadly steady against its previous days closings.   

Today’s weekly Treasury bill auction will see an total amount of Rs. 24 billion on offer consisting of Rs. 3 billion on the 91 day, Rs. 6 billion on the 182 day and Rs. 15 billion on the 364 day maturities. At last week’s auction, the weighted averages on the 364 day bill was seen increasing by 01 basis point to 10.73% while the 182 day remained steady at 9.87%. All bids received for the 91 day bill were rejected.  

The liquid maturities of 01.08.26, two 2027s (i.e. 15.01.27 and 15.06.27), 01.09.28 and 01.05.29 saw its yields decrease to intraday lows of 11.20%, 11.25%, 11.28%, 11.35% and 11.37% respectively against its previous day’s closing levels of 11.18/25, 11.25/30 each, 11.30/40 and 11.40/48. In addition, the 01.01.24 and 15.03.25 changed hands at levels of 11.13% to 11.20% and 11.22% respectively as well. 

The total secondary market Treasury bond/bill transacted volumes for 25 February was Rs. 1.22 billion.

In the money market, the OMO Department of Central Bank infused liquidity by way of an overnight and a three day term reverse repo auction for successful amounts of Rs. 25 billion and Rs. 15.3 billion, at weighted average yields of 8.97% and 8.78% respectively as the net liquidity shortfall stood at Rs. 73.40 billion yesterday. The overnight call money and repo rates averaged 8.98% and 9.00% respectively.

 

Rupee dips further  

The rupee rate on its spot contract was seen dipping further yesterday to close the day at Rs. 179.85/95 against its previous day’s closing level of Rs. 179.65/75 on the back of continued buying interest by banks. 

The total USD/LKR traded volume for 25 February was $ 84.92 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month – 180.75/95; three months – 182.60/80; and six months – 185.50/70.