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Friday, 7 April 2017 00:59 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market yields continued to drop yesterday, recording its third consecutive day of declines on the back of continued buying interest.
Yields on the liquid maturities of 15.12.21 and the two 2024’s (i.e. 01.01.24 and 01.08.24) were seen dipping to intraday lows of 12.17%, 12.50% and 12.52% respectively against its da’ys opening highs of 12.36%, 12.66% and 12.60%.
Furthermore, the two 2026 maturities (i.e.01.06.26 and 01.08.26) were also traded within the range of 12.55% to 12.65% while on the short end of the curve, 2019 maturities were seen changing hands within the range of 11.70% to 12.00% as well.
The second Treasury bill auction for the week due to the following week had been a shortened trading week, will have a total amount of Rs. 23.0 billion on offer consisting of Rs. 8.0 billion each on the 182 day and 364 day maturities and a further Rs. 7 billion on the 91 day maturity.
At Wednesday’s auction, the 364 day bill weighted average increased by four basis points surpassing the 11.00% psychological level for the first time since 8 May 2013 while the weighted averages on the 91 day and 182 day maturities increased by 4 and 7 basis points respectively to 9.67% and 10.69%.
The total secondary market Treasury bond transacted volume for 5 April 2017 was Rs. 14.4 billion
Meanwhile, the Central Bank holding in Treasury bills was seen skyrocketing once again on 5 April to Rs. 285.8 billion in book value terms reflecting an increase of Rs. 60.2 billion from 4 April 2017. In money markets, overnight call money and repo rates averaged 8.75% and 8.77% respectively as the Open Market Operations (OMO) Department of Central Bank was seen draining out an amount of Rs. 20 billion on an overnight basis at a weighted average of 7.70% by way of a repo auction. The net liquidity in the system stood at a surplus of Rs. 16.92 billion yesterday.
Rupee remains mostly unchanged
The USD/LKR rate on active spot next contracts remained mostly unchanged yesterday to close the day at levels of Rs. 152.10/20 while two weeks forward contracts stood at Rs. 152.40/55 as markets were at equilibrium.
The total USD/LKR traded volume for 5 April 2017 was $ 60.50 million.
