Treasury bond yields decrease marginally ahead of weekly bill auction

By Wealth Trust Securities

Treasury bond yields declined marginally yesterday with the liquid maturities of 01.03.21 and 15.07.23 hitting intraday lows of 9.45% and 9.87% respectively, against its previous day’s closing levels of 9.48/52 and 9.88/90, supported by continued buying interest. 

The market also witnessed trades consisting of the 15.09.19, 01.05.20, four 2021’s (i.e. 01.05.21, 01.08.21, 15.10.21 and 15.12.21) and 15.03.23 at levels of 9.09% to 9.10%, 9.30%, 9.50% to 9.60% and 9.81% to 9.85% as well. In the meantime, in the secondary bill market, August 2019 bills traded at levels of 9.01% to 9.03%.

Today’s weekly Treasury bill auction will have on offer, a total amount of Rs.20 billion consisting of Rs.5 Billion of the 91 day maturity,  Rs.4 Billion of the 182 day maturity and Rs.11 billion of the 364 day maturity. At last week’s auction, the weighted average yields decreased across the board to 8.16%, 8.70% and 9.16% respectively on the 91 day, 182 day and 364 day maturities.

The total secondary market Treasury bond/bill transacted volumes for 13August was Rs.17.22 billion.

In money markets, the overnight call money and repo rates averaged 7.93% and 7.92% respectively as the net liquidity in the system stood at a high of Rs.54.58 billion. The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained an amount of Rs.35billion on an overnight basis by way of a Repo auction at a weighted average yield of 7.58%.

Rupee loses marginally 

The USD/LKR rate on spot contracts depreciated marginally to close the day at levels of Rs.160.15/25 against its previous day’s closing levels of Rs.160.00/10 on the back of importer demand.

The total USD/LKR traded volume for 13August was $ 45.29 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 161.00/20; three months – 162.55/75 and six months – 165.00/30.

The closing, secondary market yields of the most frequently traded T – bills and bonds 

Treasury Bills       

                                                    

 91 Day Bills –8.10 / 8.30                                             

182 Day Bills –8.60 / 8.80                                             

364 Day Bills –9.00 / 9.05

Treasury Bonds

15/09/19     -     9.05 / 9.15 

01/05/20     -     9.25 / 9.30

01/03/21     -     9.42 / 9.45

01/10/22     -     9.73 / 9.83

15/07/23     -     9.86 / 9.88

01/08/24     -     9.90 / 9.95

15/10/25     -    10.00 / 10.10

01/08/26     -    10.05 / 10.15

15/06/27     -    10.10 / 10.20

15/03/28     -    10.15 / 10.25

15/05/30     -    10.25 / 10.45

15/01/33     -    10.30 / 10.60