Secondary market bond yields steady ahead of auctions

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday ahead of today’s Treasury bond auction. 

A total amount of Rs. 45 billion will be on offer consisting of Rs. 9 billion each of the 4.02-year maturity of 1 August 2021, 7.09-year maturity of 15 March 2025, 10.00-year maturity of 15 June 2027 and Rs. 18 billion of the 5.11 year maturity of 15 May 2023. The weighted average yields at the auction conducted on 9 May 2017 for maturities consisting of 15.01.19, 15.12.21, 15.05.23 and 01.08.25 were 11.07%, 11.42%, 11.49% and 11.50% respectively.

The total secondary market Treasury bond transacted volume for 9 June 2017 was Rs. 3.27 billion.

Meanwhile, in money markets, the overnight call money and repo rates averaged 8.75% and 8.78% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount for Rs. 9.00 billion for a second consecutive day at a weighted average rate of 8.75% by way of overnight reverse repo auction. The net liquidity in the system stood at a deficit of Rs. 7.17 billion. 

Rupee remains mostly unchanged

The USD/LKR rate on active spot next contracts remained mostly unchanged yesterday, to close the day at Rs. 152.85/90.  The total USD/LKR traded volume for 9 June 2017 was $ 108.00 m