Secondary market bond yields dip marginally ahead of bill auction
Tuesday, 4 November 2014 01:46
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By Wealth Trust Securities
Secondary market Treasury bond yields dipped marginally yesterday on thin volumes, ahead of today’s weekly Treasury bill auction conducted a day ahead due to a shortened trading week.
Yields on the two 2018 maturities were seen dipping to intraday lows of 7.00% and 7.05% respectively against its opening highs of 7.08% and 7.15%. In addition, a limited amount of activity was witnessed on the 1 July 2019 and the 1 July 2022 maturities within the range of 7.23% to 7.30% and 7.67% to 7.73% as well.
Today’s auction will have on offer the 182 day bill after a lapse of three weeks for an amount of Rs. 3 billion along with the 364 day bill for an amount of Rs. 9 billion against its last week’s total offered amount of Rs. 10 billion. The weighted average on the 364 day bill has remained steady at 6.00% for three consecutive weeks.
In money markets, surplus liquidity stood at Rs. 32.27 b yesterday as an amount of Rs.7.00 billion was drained out by way of a four day Repo auction at a weighted average of 5.70%. Overnight call money and repo rates remained steady to average 6.00% and 5.48% respectively.
Rupee trades within
a narrow band
In forex markets, the USD/LKR rate on spot next contracts remained mostly unchanged to close the day at Rs. 130.90/00. The total USD/LKR traded volume for 31 October was at $ 65.00 million.
Some of the forward dollar rates that prevailed in the market were: one month – 131.34; three months – 132.28; and six months – 133.33.
