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Wednesday, 30 October 2019 00:52 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The two Treasury bond auctions conducted yesterday, recorded impressive weighted average yields, with the total offered amount of Rs. 55 billion being fully subscribed. The 07 year 11 month maturity of 15.10.27 recorded a weighted average yield of 10.24% while the 19 year 09 month maturity of 15.08.39 recorded a weighted average yield of 10.68%.
The positive momentum seen in the secondary bond market continued, with the 01.05.20, 01.05.21, 01.10.22, two 2024’s (i.e. 15.03.24 & 15.06.24), 01.08.26 and 15.06.27 maturities changing hands at levels of 7.65% to 7.75%, 8.60% to 8.70%, 9.11% to 9.18%, 9.88% to 9.95%, 10.15% and 10.20% to 10.22% respectively. Furthermore, the auctioned maturity of 15.10.27 was seen trading at a low of 10.25%, subsequent to the auction. In the secondary bill market, January, May and October 2020 maturities were traded at levels of 7.55%, 7.75% to 7.85% and 8.35% respectively.
At today’s weekly Treasury bill auction, the total offered amount of Rs. 16 billion, will consist of Rs. 1.5 billion of the 91 day, Rs. 3 billion of the 182 day and Rs. 11.5 billion of the 364 day maturities.
At last week’s auction, the weighted average yields decreased across the board by 06, 03 and 01 basis points respectively on the 91 day, 182 day, and 364 day maturities to 7.50%, 7.66% and 8.34%.
The total secondary market Treasury bond/bill transacted volume for 28 October was Rs. 8.70 billion.
In money markets, the net overnight surplus liquidity stood at Rs. 16.33 billion with the overnight call money and repo rates averaging at 7.43% and 7.47% respectively.
Rupee loses further
In the Forex market, the Rupee depreciated further yesterday on spot contracts, closing the day at Rs. 181.55/60 against the previous day’s closing level of Rs. 181.45/50.
The total USD/LKR traded volume for 28 October was $ 56.39 million.
Some of the forward USD/LKR rates that prevailed in the market were one month - 182.15/30; three months - 183.30/50 and six months - 184.05/35.
