Bond yields increase ahead of weekly auction in secondary markets

Wednesday, 15 October 2014 01:16 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Bond yields were seen increasing in secondary markets yesterday across the yield curve ahead of today’s weekly Treasury bill auction. Activity was witnessed from two-year durations of 2016’s to intraday highs of 6.50%, the three-year duration of 15-05-2017 to

a high of 6.90%, the two four-year durations (i.e. 01.04.2018 and 15.08.2018) to highs of 7.00%, the five-year duration of 01-07-2019 to 7.00%. In addition, considerable volumes of the 1 July 2022 maturity were seen changing hands within the range of 7.52% to 7.63% and the 1 January 2024 within 7.84% to 7.94% as well. Today’s weekly auction, conducted after a lapse of one week, will have on offer a total amount of Rs. 8 billion consisting of Rs. 0.5 billion on the 91-day maturity, Rs. 2.5 billion on the 182 day maturity and Rs. 5.0 billion on the 364-day maturity. The weekly auction conducted two weeks prior, saw all bids rejected for the first time in nearly three years while the last successful auction conducted three weeks prior, saw the 364 day maturity fetch a weighted average of 5.89%. In money markets, overnight call money and repo rates decreased further to average 6.07% and 5.78% respectively as surplus liquidity remained at Rs 50.91 billion yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 15 billion by way of a three-day term repo auction at a weighted average of 5.77% while a further amount of Rs. 35.91 billion was seen been deposited at its Standing Deposit Facility rates of 5.00% and 6.50%.