Yields edge up marginally ahead of weekly bill auction
Wednesday, 20 November 2013 11:04
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By Wealth Trust Securities
Secondary market bond yields increased marginally yesterday ahead of the weekly bill auction due today. However, volumes traded continued to be rather moderate as most market participants were seen on the sidelines ahead of this year’s budget reading due tomorrow (22nd November). The liquid two 2018 maturities (i.e. 01.04.208 and 15.08.2018) increased to a daily high of 11.12% and 11.25% respectively from its opening levels of 11.08/10 and 11.18/22 while the 01.01.2017 maturity was quoted at levels of 10.82/85. Furthermore the 01.04.2016 maturity was traded within the range of 10.47/50 as well. Meanwhile, today’s Treasury bill auction will see amounts of Rs.0.5 Bn, Rs.1 Bn and Rs.7.5 Bn been on offer for the 91 days, 182 days and 364 day maturities respectively. At last week’s auction, the weighted average’s declined for an 8th consecutive week to 8.89% and 9.79% respectively on the 182 day and 364 day maturities while the 91 day bill was not on offer.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 7.74% and 7.04% respectively despite surplus liquidity decreasing further to at Rs. 15.45 billion yesterday.
The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs 7.00 Bn on a seven day basis at a WAvg of 7.48% while a further amount of Rs 8.45 Bn was deposited at its window rate of 6.50%.
Rupee remains steady (sub head)
The USD/LKR rate on all contracts (i.e. cash, tom, spot and spot next contracts) remained steady yesterday at levels of Rs.131.08/09, Rs.131.09/10, 131.10/13 and Rs.131.13/17 respectively as markets remained at an equilibrium. The total USD/LKR traded volume for the previous day (18-11-13) stood at US $ 73.03 million.
Some of the forward dollar rates that prevailed in the market were 1 Month - 131.91; 3 Months - 133.60 and 6 Months - 136.00.
