Secondary market yields steady ahead of weekly Treasury bill auction
Wednesday, 4 September 2013 00:00
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By Wealth Trust Securities
Activity in secondary bond markets was rather moderate yesterday, with a limited amount of volumes changing hands on the liquid two five-year maturities, as it was seen closing the day at levels of 11.77/80 and 11.81/85 respectively ahead of today’s weekly Treasury bill auction.
However, interestingly the yields on a three-and-a-half year maturity were seen spiking once again to levels of 11.60/65, reflecting a kink on the yield curve once again. A total amount of Rs. 9 billion will be on offer at today’s auction in comparison to its last week’s total amount of Rs. 10 billion with Rs. 1 b each on the 91-day and 182-day maturities respectively and Rs. 7 b on the 364-day maturity.
At last week’s auction, weighted averages remained mostly unchanged on all three maturities at 8.61%, 9.64% and 10.56%.
Meanwhile in secondary bill markets, duration centring the 364-day bill was seen been quoted at levels of 10.55/60, January durations at 9.95/00 and March durations at 10.15/25.
The weighted average on the overnight repo auction conducted by the Open Market Operations (OMO) department of Central Bank continued to decrease to record 7.24% with Rs. 8 billion being mopped up yesterday as surplus liquidity in money markets remained high at Rs 22.56 b.
A further amount of Rs 14.56 b was seen been deposited at CBSL’s Repo window of 7.00%. This intern helped overnight call money and repo rates to average 8.69% and 8.15% respectively.
