For the week ending Wednesday, yield rates for Treasury Bills and Treasury Bonds followed its previous weeks trend to decline in the primary market. The Treasury Bill WAYR for 91 day remained at previous week’s level, whereas, 182 day and 364 day maturities declined by two and nine basis points to 11.19% and 11.24%, respectively. Higher market preference was shown for both shorter and longer end of the auction. There was a one three year Treasury Bond auction held during the week and accepted at the WAYR of 12.20%, 58 basis points below the previous three year Treasury Bonds auction.

The falling purchasing WAYR for Treasury Bills and Treasury Bonds in the secondary market followed the primary market trend. Treasury Bond yield rates corrected its ‘kinked’ shape in the yields curve. There were some aggressive secondary market transactions witnessed for medium term Government Securities during the week. The yield curve for the current week smoothly moves upto six year maturities below the previous week’s yield curve. Outright transactions by primary dealers amounted to Rs. 12,043 million, while repurchase transactions amounted to Rs. 35,385 million. (Press Release)