Secondary market treasury yields edge up during the week

Monday, 27 August 2012 00:01 - - {{hitsCtrl.values.hits}}

Secondary market treasury yields edged up during the start of the week on the back of expectations for weighted averages (Wavg) to increase at the weekly Treasury bill auction.

Treasury Bills

91 Day Bills   – 11.35 / 11.45

182 Day Bills   – 13.00 / 13.08

364 Day Bills   – 13.20 / 13.27

Treasury Bonds

01/04/14   – 13.75 / 13.78

15/07/15   – 13.85 / 13.89

01/04/16   – 14.20 / 14.25

15/07/17   –14.25 / 14.30

01/11/19   –14.45 / 14.65

    17th August   24th August

1- Month      133.63   133.58

3 - Months   135.95   136.13

6 - Months   139.38    139.55

The 19-month bond and the three-year bond reflected the highest weekly increase of around 10 basis points as Treasury bill Wavg increased by seven bp and four bp respectively on the 182 day and 364 day maturities to 13.02% and 13.27%.

Furthermore the 91-day maturity remained steady at 11.36%. However yields dipped by around five bp towards the latter part of the week on the back of moderate buying pressure. Given are the closing, secondary market yields for the most frequently traded maturities.

Money markets remain stable

Overnight call money and repo rates remained steady throughout the week averaging 10.55% and 9.56% respectively as market surplus liquidity varied between a weekly low of Rs. 1.9 b and a high of Rs. 6.6 b.

The Central Bank continued to mop of excess liquidity on an overnight basis throughout the week through its Open Market Operations (OMO) at a weekly average of 9.43%.

Forward dollar premiums increase

The rupee traded between a narrow range of Rs. 132.20 to Rs. 132.35 during the week as forward dollar premiums increased on back of importer demand. Considerable volumes were seen been traded on contracts for value cash and tom throughout the week. Given are some forward dollar rates that prevailed by the end of the week.