Secondary market bond yields up ahead of weekly auction
Wednesday, 13 August 2014 00:00
-
- {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Secondary market bond yields were seen increasing for a second consecutive day on the back of profit taking ahead of today’s weekly Treasury bill auction. Activity was seen surrounding the 1 July 2019; 1 July 2022 and 1 January 2024 maturities as its yields were seen increasing to intraday highs of 7.05%, 7.84% and 8.10% respectively against its days opening lows of 6.88%, 7.72% and 8.06%.
In addition, the two 2029s (i.e. 1 January 2029 and 1 May 2029) were seen changing hands within the range of 9.10% to 9.13% while the two 2018’s (i.e. 1 April 2018 and 15 August 2018) were seen closing the day at levels of 6.85/89 and 6.87/93 respectively.
At today’s weekly Treasury bill auction, a total amount of Rs. 12 b will be on offer consisting of Rs. 1 b on the 91 day, Rs. 2 b on the 182 day and Rs. 9 b on the 364 day maturities.
At last week’s auction, weighted averages (WAvgs) continued its declining trend with the 364 day WAvg falling below CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%, following the trend of the 91 day and 182 day maturities.
The WAvg on the 364 day bill dipped the most by 13 basis points (bp) to 6.45% while the 91 day and 182 day bills reflected dips of eight bp each to 6.39% and 6.28% respectively.
Meanwhile in secondary bill markets the 91 day, 182 day and 364 day maturities were quoted at levels of 6.20/25, 6.25/30 and 6.30/35 respectively.
In money markets, the total surplus amount of Rs. 20.89 b was once again deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% yesterday as no auctions under its Open Market Operations (OMO) were conducted for a second consecutive day. The overnight call money and repo rates remained steady to average 6.70% and 6.55% respectively.
Rupee dips marginally
In Forex markets, the USD/LKR rate closed the day marginally lower at Rs. 130.17/23 yesterday on the back of importer demand. The total USD/LKR traded volumes for 11 August stood at $ 71.30 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.50; three months – 131.15; and six months – 132.15.
