Bond market activity moderates

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday as most market participants were seen on the sidelines. Limited trades of the 2022s (i.e. 01.07.22 and 01.10.22), 2023s (i.e. 15.05.23, 15.07.23 and 15.12.23), 15.03.24 and 01.05.29 maturities were witnessed at levels of 9.76% to 9.80%, 9.85% to 9.93%, 9.95% to 10.00% and 10.55% respectively. The total secondary market Treasury bond/bill transacted volumes for the 24 May was Rs. 5.74 billion. 

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen mopping up excess liquidity by way of a term repo auction. The auctions drained out an amount of Rs. 28.39 billion for a period of seven days at a weighted average of 8.59%. The net surplus liquidity in the system stood at Rs. 43.20 billion as overnight call money and repo rates averaged at 8.49% and 8.58% respectively.

Rupee appreciates 

In Forex markets, the spot rate was seen appreciating yesterday to close the day at Rs. 176.20/30 when compared against the previous day’s closing levels of Rs. 176.30/45 on the back of spot and forward dollar contract selling interest.

The total USD/LKR traded volume for the 24 May 2019 was $72.40 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 177.00/20; three months - 178.60/90 and six months - 181.10/40.