Foreign selling in secondary bond market continues

The secondary bond market witnessed a day of thin trades yesterday, with selling interest shown mainly by some foreign investors. 

The 01.04.2018 and 15.09.2019 maturities saw their yields increase marginally to intraday highs of 11.15% and 11.60% respectively against opening lows of 11.00% and 11.50%. Activity along the rest of the yield curve remained dull.

 Given below are the closing, secondary market yields of the most frequently traded maturities.

The overnight repo rate dipped marginally to average 8.67% as the net deficit in the system decreased to Rs. 23.48 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 27 billion on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.50%. The overnight call money rate remained at 8.42%.

Activity shifts to one week forward contracts

 In Forex markets, activity was seen shifting to one-week forward contracts, as it closed the day at levels of Rs. 148.25/40 with hardly any spot next transactions. The total USD/LKR traded volume for 26 October 2016 was $ 65.40 million. Given below are some forward USD/LKR rates that prevailed in the market.