Secondary bond market yields edge up ahead of Rs. 200 b auction

THE secondary bond market on Wednesday saw yields edge up marginally as the uncertainty stemming from the imposition of 'Reciprocal Tariffs' by the US continued to weigh down on market sentiment. Trading activity and transaction volumes were seen at subdued levels.

- BY WEALTH TRUST SECURITIES

Accordingly, limited trades were observed on selected maturities. The 01.09.28/15.10.28 and 15.12.28 maturities were seen trading at the rates of 8.95% and 8.975% respectively. The 15.10.29 and 15.12.29 maturities were seen trading at the rates of 9.45% and 9.48%-9.51% respectively.

In secondary market bills, trades were observed on August, September, November and December bills at the rates of 7.52%, 7.60%, 7.68% and 7.75%-7.73% respectively.

This comes ahead of a round of Treasury bond auctions, due on the 11 July (today) with a total offered amount of Rs. 200.00 billion.

The auction will be comprised of:

1. Rs. 75.00 billion from a 15 October 2029 Maturity bearing a coupon rate of 10.35%

2. Rs. 75.00 billion from a 1 June 2033 Maturity bearing a coupon rate of 09.00%