Secondary market bond yields continue to increase ahead of bond auctions

By Courtesy Wealth Trust Securities

The upward trend in secondary market Treasury bond yields continued yesterday as well on the back of continued selling interest on the liquid maturities of 1 August 2021, 1 July 2022 and 1 September 2023, reflecting increases of 40 basis points each and 30 basis points respectively during the day to intraday highs of 9.25%, 9.30% and 9.32% respectively in comparison to its previous day’s closing levels of 8.80/87, 9.00/05 and 9.08/20 as volumes traded remained high.

This was ahead of today’s Treasury bond auctions, at where Rs. 2 billion will be on offer consisting of Rs. 1 billion each on a two-year maturity of 15 June 2017 and a 3.05 year maturity of 15 November 2018.

Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.10% and 5.78% respectively as surplus liquidity remained steady at Rs. 65.41 b yesterday.

Rupee gain grounds

 The USD/LKR rate on spot contracts appreciated yesterday by 20 cents to close the day at Rs. 133.90 against its previous day’s closing level of Rs. 134.10. The total USD/LKR traded volume for 19 June was $ 62.30 million.