Steady progress in weekly bill auctions continue

Wednesday, 3 June 2020 00:00 - - {{hitsCtrl.values.hits}}

Bond yields increase
Rs. 65 billion on offer via primary Treasury bond auctions

By Wealth Trust Securities

The steady progress at the weekly Treasury bill auctions continued at its auctions held yesterday as well, as a total amount of Rs. 20.46 billion was accepted against a total offered amount of Rs. 21.5 billion. The weighted average yields on the 91 day and 182 day bills trickled down by 01 and 02 basis points respectively to 6.68% and 6.80%. The weighted average yield on the 364 day maturity remained steady at 6.93%. The bids to offer ratio stood at 1.7:1.

In the secondary bond market, yields increased yesterday on the back of selling interest, as the market favourite maturities of 01.10.22, 15.01.23, 2024’s (i.e. 15.03.24 & 15.09.24), 01.05.25 and 15.10.27 saw its yields hit intraday highs of 7.75%, 7.90%, 8.42%, 8.50%, 8.60% and 8.92% respectively against its previous day’s closing levels of 7.35/40, 7.75/78, 8.35/40, 8.40/44, 8.50/55 and 8.87/90. In the secondary bill market, 27 November, maturity changed hands at level of 6.82%.

This was ahead of today’s Treasury bond auctions, where an total amount of Rs. 65 billion will be on offer, consisting of Rs. 40 billion on a new 2 year and 6 months maturity of 15.12.2022 and Rs. 25 billion on a 4 year and 11 months maturity of 01.05.2025. The weighted average yields at the auctions conducted on 12 May 2020 for the maturities of 15.01.2023 and 01.07.2028 were recorded at 8.05% and 8.85% respectively.

The total secondary market Treasury bond/bill transacted volume for 01 June was Rs. 6.16 billion.

In money markets, the weighted average rates on overnight call money and repo was recorded at 5.84% and 5.89% respectively as the DOD (Domestic Operations Department) of Central Bank was seen injecting an amount of Rs. 15 billion by way of an overnight reverse repo auction at a weighted average rate of 5.88%. The overnight net liquidity surplus in the system increased to Rs. 75.89 billion yesterday.

Rupee appreciates further

In the Forex market, the USD/LKR rate on spot contracts appreciated further yesterday to close the day at Rs. 185.80/00 against its previous day’s closing levels of Rs. 186.00/10 on the back continued selling interest from banks.

The total USD/LKR traded volume for the 01st of June 2020 was $ 117.66 million.

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

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.