Secondary market bond yields up marginally ahead of weekly TBill auction
Wednesday, 17 July 2013 00:14
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By Wealth Trust Securities
Activity in secondary bond market picked up yesterday, as yields edged up marginally during the day, with the liquid two five year maturities (i.e. 01.04.2018 and 15.08.2018) increasing to intraday highs of 11.33% and 11.40% respectively.
However buying interest at these levels stemmed the upward movement as it closed the day lower than its day’s highs at levels of 11.30/33 and 11.37/39 respectively. In addition, the 3 year maturity was seen closing the day at levels of 10.92/00 subsequent to trading at an intraday high of 10.95%.
Meanwhile, the Public Debt Department (PDD) of Central Bank reduced the total amount to be offered at today’s weekly Treasury bill auction to Rs.10 billion for the first time in seven weeks against its Rs.12 billion offer of last week with Rs. 1 billion each on the 91 day and 182 day maturities while Rs.8 billion is on offer on the 364 day maturity.
At last week’s auction, all three maturities reflected a dip of 2 basis points each on its weighted average’s to 8.63%, 9.68% and 10.64% respectively. Furthermore in secondary bill markets, the 364 day bill was seen been quoted at levels of 10.54/59 as well.
The weighted averages on overnight call money and repo rates remained steady to average 8.70% and 8.09% respectively as surplus liquidity remained high of Rs. 24.76 Bn yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs 24.25 Bn on an overnight basis at a weighted average of 7.79% by way of a repo auction while a further amount of Rs 0.51 Bn was seen been deposited at CBSL’s repo window of 7.00%.
Rupee loses ground
The demand for spot next contracts saw the rupee lose ground to levels of Rs 131.40/50 as spot next contracts were traded within a range of Rs 131.45 to Rs 131.55 yesterday. The total USD/LKR traded volume for the previous day (15-07-13) stood at US $ 26.83 million.
Some of the forward dollar rates that prevailed in the market were 1 Month – 132.20; 3 Months- 133.68 and 6 Months- 135.80
