Secondary market bond yields pick up once again following auction announcement

Tuesday, 24 March 2015 00:13 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities In secondary bond markets yesterday, yields were seen increasing once again reversing a downward trend witnessed towards the latter part of last week following the announcement of two Treasury bond auctions scheduled for 26March, totalling Rs. 30 billion. In thin trade, activity centred the two 2018s (i.e. 1 April 2018 and 1 June 2018), the 15 September 2019, the 1 August 2021 and the 1 September

2023 within the range of 8.30% to 8.40%, 8.55% to 8.60%, 8.80% to 8.90%, 9.05% to 9.12% and 9.60% to 9.70% respectively. The two bond auctions will consist of Rs. 10 billion of the 15 September 2019 and Rs. 20 billion of the 1 September 2023 maturities. In money markets, the weighted average on overnight repo dipped to 6.84% while the weighted average on call money remained steady at 6.70% as surplus liquidity remained high at Rs. 103.84 b yesterday. Rupee remains mostly unchanged The rupee on the two week forward contract was seen appreciating marginally yesterday to levels of Rs.133.80/85 in comparison to its previous day’s closing levels of Rs.133.85/95. The total USD/LKR traded volume for 20March was at $ 21.75 million. Some of the forward USD/LKR rates that prevailed in the market were one month – 134.25; three months – 135.30; six months – 137.10.