Secondary market bond yields steady ahead of weekly Treasury bill auction

By Wealth Trust Securities

Secondary bond market yields remained mostly steady across the yield curve ahead of today’s weekly Treasury bill auction. At today’s auction Rs. 1 billion, Rs. 3 billion and Rs. 11 billion are on offer on the 91 day, 182 day and 364 day maturities respectively.

Activity remained high in markets across the yield curve with the liquid two five year maturities (i.e. 1.4.2018 and 15.8.2018) closing the day at levels of 10.93/96% and 10.97/99% respectively. In addition, continued buying interest saw the 364 day bill close the day at 10.70/75%.

Meanwhile in money markets, overnight call money and repo rates remained steady to average 9.00% and 8.32% respectively as surplus liquidity was at Rs. 6.27 billion yesterday. An amount of Rs. 1 billion was drained out by way of an overnight Repo auction conducted by the Open Market Operations (OMO) department of Central Bank at a weighted average rate of 7.80% while an amount of Rs. 5.2 billion was deposited at CBSL’s repo window rate of 7.00%.

Rupee dips further

In Forex markets, the rupee continued to dip marginally to close the day at Rs. 126.47/50 against its previous day’s closing of Rs. 126.35 on continued importer demand. The total USD/LKR volume for the previous day stood at US $ 52.65 million.