Secondary bond market rates increase in thin trade

By Wealth Trust Securities

Following the outcome of the recently conducted Treasury bond auctions, secondary market yields were seen increasing yesterday in thin trade.  

The auctioned maturities of 15.01.19 and 15.12.21 were seen hitting intraday highs of 12.20% and 13.00% respectively against their opening lows of 12.08% and 12.90%.  

In money markets, call money and repo averaged 8.49% and 8.66% respectively as the OMO department of the Central Bank was seen infusing an amount of Rs. 31.23 billion yesterday at a weighted average of 8.47% by way of an overnight reverse repo auction. The net deficit stood at Rs. 40.03 billion.

 Rupee appreciates 

In Forex markets yesterday, the USD/LKR rate on active two-week and one-month forward contracts were seen dipping in morning hours of trading to levels of Rs. 153.05/10 and Rs. 153.60/75 respectively against its previous day’s closing levels of Rs. 152.30/45 and Rs. 152.75/90 on the back of continued importer demand. However, it was seen bouncing back from its lows to close the day at levels of Rs. 152.00/15 and Rs. 152.55/70 respectively on the back of late export conversion.  The total USD/LKR traded volume for 23 February was $ 126.77 million.

 Some of the forward USD/LKR rates that prevailed in the market were three months - 154.70/00 and six months - 157.50/70.