Secondary market bond yields increase marginally ahead of weekly auction

By Wealth Trust Securities

The secondary bond market yields were seen increasing marginally yesterday ahead of today’s weekly Treasury bill auction. 

Selling interest on the 15.12.21, 15.05.23 and 01.08.24 saw its yields increase to daily highs of 10.70%, 10.85% and 10.88% respectively against its previous day’s closings of 10.64/66, 10.78/83 and 10.80/85. However, buying interest at these levels curtailed any further upward movement.

At today’s bill auction, a total amount of Rs. 27.50 billion will be on offer consisting of Rs. 3 billion on the 91day, Rs. 14.5 billion on the 182 day and Rs. 10 billion on the 364 day maturities. At last week’s auction, weighted averages were seen decreasing drastically to 10.01% and 10.18% on the 182 day and 364 day maturities respectively while the 91 day maturity dipped to 9.56%.

The total secondary market Treasury bond transacted volume for 24 July was Rs. 7.68 billion.

In money markets, the net surplus liquidity was seen dipping to Rs. 3 billion yesterday as no OMO (Open Market Operations) auctions were conducted. Call money and repo remained steady to average 8.72% and 8.69% respectively.

Rupee broadly steady

The USD/LKR rate on spot contracts closed the day broadly steady yesterday at Rs. 153.55/65 on the back of an equilibrium market.

The total USD/LKR traded volume for 24 July was $ 85.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 154.60/70; three months – 156.52/72; and six months – 159.50/60.