Rs. 155 b Treasury Bond auction fully subscribed

THE round of Treasury Bond auctions conducted yesterday recorded a positive outcome. Yields were seen reflecting the bullish momentum in the secondary bond market and successfully raised the entire Rs. 155 on offer across both phases. The total bids received exceeded the offered amount by a healthy 2.91 times, across both phases.

- 

In particular, the 15.06.29 maturity (11.75% coupon) was issued at a weighted average yield of 10.30%. This was in line with market expectations as the maturity was seen quoted at the rate of 10.30%/10.35% just prior to the auction. Maturity-wise the entire Rs. 60 billion offered was snapped up at the 1st phase of subscription in competitive bidding.

The 15.03.31 maturity (10.25% coupon) was issued at the weighted average rate of 10.96% and also raised the entire Rs. 55 billion on offer at the 1st phase. This was also in line with market expectations as the maturity was seen quoted at the two-way rate of 10.90%/11.00% just prior to the auction.

The 15.03.35 maturity was issued at the weighted average rate of 11.22%. However, the maturity only raised Rs. 15.76 billion or 39.40% of the offered amount at the 1st phase. This prompted the opening of the 2nd phase which resulted in the entire Rs. 40 billion offered being raised and led to the overall auction going fully subscribed.