Yields remain broadly steady ahead of weekly Treasury bill auction

Wednesday, 15 March 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary market bond yields remained mostly unchanged yesterday in thin trade, ahead of the weekly Treasury bill auction due today.

Yields on the short dated liquid maturities of 15.01.19 and 15.12.21 were seen increasing to daily highs of 12.28% and 13.08% respectively against its days opening lows of 12.15% and 13.05% while the 01.08.24 and 01.08.26 continued to change hands at levels of 13.20% and 13.25% respectively.

On the long end of the yield curve, the 15.05.30 was seen changing hands within the range of 13.20% to 13.30% as well.

Today’s, weekly Treasury bill auction, will have on offer a total amount of Rs.25 billion consisting of Rs.9.5 billion each of the 91 day and 182 day maturities and a further Rs.6 billion on the 364 day maturity. At last week’s auction, the weighted averages increased across the board for a fifth consecutive week to 9.47%, 10.34% and 10.74% respectively.

The total secondary market Treasury bond Transacted volume for 13 March was Rs.0.9 billion.

In money markets, overnight call money and repo rates averaged 8.50% and 8.57% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka infused an amount of Rs.18.18 billion at a weighted average of 8.50%, by way of an overnight reverse repo auction. The net liquidity shortfall in the system stood at Rs.20.80 billion yesterday.

Downward trend

in rupee continues

The Rupee on the active two weeks forward contracts were seen depreciating for a fifth consecutive day to close the day at Rs.152.75/85 against its previous day’s closing level of Rs.152.50/60 on the back of importer demand and a strengthening dollar.

The total USD/LKR traded volume for 13 March was $ 158.00 million.

Given are some forward USD/LKR rates that prevailed in the market: three months – 155.30/50; six months – 158.40/60.

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