Yields remain broadly steady ahead of T-Bond auctions

By Wealth Trust Securities

The secondary market bond yields remained broadly unchanged yesterday as most market participants were seen on the sidelines ahead of today’s Treasury bonds auctions.  

Today’s Treasury bond auction will see in total an amount of Rs. 100 billion on offer, consisting of Rs. 30 billion of 01.10.2023, Rs. 40 billion of 01.02.2026 and a further Rs. 30 billion of 01.07.2028. Stipulated cut off rates were published as 5.75%, 6.60% and 7.08% respectively. The weighted average yields at the bond auctions conducted on 30 July for the maturities of 15.11.2022, 01.02.26 and 15.08.2027 were recorded at 5.73%, 6.50% and 7.05% respectively. 

A limited amount of trades consisting of the 15.12.22, 2023’s (i.e. 15.07.23 & 01.09.23), 15.06.24 and 15.08.27 maturities was witnessed at levels of 5.47%, 5.68%, 5.70% to 5.72%, and 6.05%, 6.79% to 6.81% respectively. Furthermore, the maturities of 01.10.22 and 01.08.25 were seen changing hands within at levels of 5.42% and 6.39% to 6.40% respectively as well. 

The total secondary market Treasury bond/bill transacted volumes for 9 September was Rs. 24.20 billion. In the money market yesterday, the weighted average rates on overnight call money and Repos remained steady at 4.52% and 4.55% respectively as the overnight surplus liquidity increased to Rs. 202.39 billion.

LKR loses further

In the Forex market, USD/LKR rate on spot contracts was seen depreciating further yesterday to hit an intraday low of Rs. 184.95 before closing the day at a level of Rs. 184.65/80 against its previous day’s closing levels of Rs. 184.35/45. The total USD/LKR traded volume for 9 September was $ 57.61 million.   

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