Yields remain steady ahead of weekly bill auction

By Wealth Trust Securities

The secondary bond market yields remained mostly unchanged yesterday, with moderate activity. 

Limited trades of the 15.12.21 maturity were witnessed within the range of 10.00% to 10.03% while in the secondary bill market, February, March, October and November maturities were traded at levels of 7.92%, 8.00%, 9.20% and 9.27% to 9.30% respectively.

Today’s bill auction will have on offer a total amount of Rs.17.5 billion consisting of Rs.3.0 billion of the 91 day, Rs.7.5 billion of the 182 day and Rs.7 billion of the 364 day maturities At last week’s auction, the weighted average yields decreased across the board to 8.20%, 8.88% and 9.44% respectively on the 91 day, 182 day and 364 day maturities.

The total secondary market Treasury bond/bill transacted volumes for 4 December was Rs.4.80 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.14% and 7.53% respectively as the net surplus liquidity in the system increased to Rs.27.30 billion. The OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs.17.86 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%.

Rupee appreciates

 In the Forex market, the USD/LKR spot rate was seen appreciating yesterday to close the day at Rs.153.30/35 against its previous day’s closing level of Rs.153.55/60 on the back of exporter dollar conversions.

The total USD/LKR traded volume for 4 December was $ 57.36 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 154.30/40; three months – 155.90/00; six months – 158.50/60.