Weekly Treasury bill auction rejected for first time in 3 years

Thursday, 2 October 2014 00:32 - - {{hitsCtrl.values.hits}}

Secondary market bond yields edge up for first time in 12 sessions

Liquidity increases to 8-month high

All bids at yesterday’s weekly Treasury bill auction were rejected for the first time in three years as total bids received amounted to a 28-month high of Rs 75.64 billion.

Wealth Trust Securities said following the outcome of the auction results, the decreasing trend in secondary market bond yields witnessed during morning hours of trade was seen reversing as yields were seen edging up considerably. It said activity was at its highest levels across the yield curve with the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) changing hands within daily lows of 6.30% and 6.35% respectively to highs of 6.60%, the 1 July 2019 maturity within 6.43% to 6.75%, the 1 May 2021 maturity within 6.95% to 7.20%, the 1 July 2022 within 7.07% to 7.40% and the 1 January 2024 within 7.38% to 7.61%. In addition, a limited amount of activity was seen on the two 2029 maturities (i.e. 1 January 2029 and 1 May 2029) within the range of 8.48% to 8.55% as well. “In money markets yesterday, overnight call money and repo rates averaged 5.72% and 5.71% respectively as market surplus liquidity increased to an eight month high of Rs. 95.60 billion,” Wealth Trust Securities added.