Short tenor yields edge up marginally

By Wealth Trust Securities

The secondary bond market witnessed mixed fortunes yesterday, as yields on the short end of the curve increased marginally with the longer end yields holding steady. 

Selling interest of the 15.10.18 and 01.03.21 maturities resulted in their yields picking up to 10.95% and 11.28% respectively when compared against the previous day’s closing levels of 10.85/95 and 11.25/32.

In contrary, buying interest of the 01.01.22, 01.08.26 and 15.05.30 saw it changing hands within the range of 11.55% to 11.56%, 11.65% to 11.70% and 11.96% to 11.975% respectively, against its previous day’s closing levels of 11.55/60, 11.68/71 and 11.97/05.

Furthermore, in secondary bill markets, bills maturing in Feb 2017 were quoted at levels of 9.25% to 9.40% and September 2017 maturities at levels of 10.25% to 10.33%. 

Meanwhile in money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected only an amount of Rs.28.92 billion at a weighted average rate of 8.48% as the net liquidity shortfall dipped to Rs.28.18 billion. The overnight call money and repo rates averaged at 8.42% and 8.68% respectively. 

Rupee fluctuates  

In Forex markets, the rupee on spot next transactions was seen losing ground to levels of Rs.146.60/75 during the morning hours of trading before bouncing back to levels of Rs.146.10/20 and thereafter closing the day at levels of Rs.146.30/45. One week forward contacts ended at Rs.146.45/65.

The total USD/LKR traded volume for 22 September was $ 35.81 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month – 147.15/35; three months – 148.80/10; six months – 151.25/60.