Auction yields edge up amid thin volumes | Sunday Observer
Weekly Government Securities Market

Auction yields edge up amid thin volumes

21 May, 2023

The secondary market yield curve continued to budge higher mainly on the short to mid end of the curve as selling interest persisted on the back of rising concerns over DDR and DDO strategies. Meanwhile, at the weekly bill auction, 6M and 1Y T-Bill oversubscribed and the weighted average yields of the maturity edged down marginally after 4-week.

The secondary market was rather on very dull sentiments as the investors were on the sidelines which made the activities tone down amidst thin volumes. As the week progressed, constant buying interest on 01.07.25 maturity traded at 29.50%-30.25% was highlighted.

At the Treasury Bill auction, total offered amount of Rs. 180.0Bn was fully accepted after 2-weeks with yields of 03M, 06M and 1Yr T-Bills lowering to 25.47% (-33bps), 25.22% (-20bps) and 22.79% (-35bps), respectively. Further, the 06M observed a greater reception while the acceptance level of 1Yr T-Bill was 17.0% higher than the amount offered nearly after 3-weeks of the previous full acceptance.

In the Forex market, the Rupee appreciated further against the greenback with rupee being recorded at Rs. 310.40 compared to Rs. 316.40 recorded during the beginning of the week.

Courtesy: First Capital Research (May 17, 2023)