Secondary market bond yields increase ahead of weekly auction

By Wealth Trust Securities

Moderate activity was witnessed in the secondary bond market yesterday with yields increasing in comparison to the previous day’s closing levels. 

The two liquid seven-year maturities of 01.01.24 and 01.08.24 were seen hitting intraday highs of 12.70% each against its previous day’s closing levels of 12.60/75 and 12.65/75. Furthermore, the 15.12.21 and 01.08.26 maturities traded within the range of 12.20% to 12.25% and 12.70% respectively

 This was ahead of today’s weekly Treasury bill auction, where a total amount of Rs. 21 billion will be on offer consisting of Rs. 6 billion of the 91 day, Rs. 7 billion of the 182 day and Rs. 8 Billion of the 364 day maturities. At the last auction, the 91 day weighted average increased by 05 bps to 9.72%, 182 day by 8 bps to 10.77% and the 364 day by 7 bps to 11.09%

The total secondary market Treasury bond Transacted volume for 17 April 2017 was Rs. 0.4 billion. Meanwhile in money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 18.00 billion on an overnight basis at a weighted average of 7.52% by way of a repo auction as the net surplus liquidity in the system increased to Rs. 16.99 billion. The overnight call money and repo rates averaged 8.75% and 8.76% respectively. 

Rupee remains 

mostly unchanged 

 In Forex markets, the two weeks forward contracts were seen closing the day mostly unchanged at Rs. 153.10/20 as activity moderated.

The total USD/LKR traded volume for 17 April 2017 was $ 112.40 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.65/85; three months - 155.75/95 and six months - 159.10/40.