Bond yields spike ahead of bond auctions

By Wealth Trust Securities

Secondary bond market yields were seen increasing considerably yesterday on the back of foreign and local selling interest. 

The maturities of 15.11.18, 01.03.21, 01.05.21, 01.08.21 and 01.08.24 saw its yields increase to intraday highs of 11.60%, 12.51%, 12.70% and 12.65% each respectively against its opening levels of 11.45/60, 12.40/50, 12.50/60, 12.50/65 and 12.45/60. 

This was ahead of today’s Treasury bond auctions, where a total amount of Rs.33 billion will be on offer consisting of three maturities. The 1.11 year maturity of 15.01.2019 will have on offer Rs.6 billion while the 4.10 year maturity of 15.12.2021and the 7.06 year maturity of 01.08.2024 will have Rs.13.5 billion each on offer.

Meanwhile in money markets, the overnight call money and repo rates remained mostly unchanged to average at 8.39% and 8.42% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen mopping up an amount of Rs.60.00 billion on an overnight basis by way of a Repo auction at a WAvg of 7.54% yesterday. The net surplus liquidity stood at Rs.59.19 billion.

Rupee remains steady

The dollar/rupee rate on two week and one month forward contracts remained mostly unchanged yesterday to close at Rs.150.80/90 and Rs.151.25/40.

The total USD/LKR traded volume for 25January was $ 82.80 million.

Some of the forward USD/LKR rates that prevailed in the market were three months – 152.95/05 and six months – 155.50/70.