Bond market remains active as positive momentum continues

By Wealth Trust Securities

The secondary bond market remained active yesterday with the liquid maturities of 01.07.19, 01.03.21, 15.03.23 and 01.08.24 trading within the range of 9.02% to 9.05%, 9.47% to 9.50%, 9.77% to 9.80%, and 9.85% to 9.92%, respectively. Furthermore, activity consisting of the 01.05.19, 01.05.20, 15.12.21, 01.08.26 and 01.09.28 maturities was also witnessed at levels of 9.00% to 9.10%, 9.30% to 9.35%, 9.62%, 10.05% to 10.08%, and 10.15% to 10.20%. In the secondary bill market, January and August 2019 maturities were traded at levels of 8.60% and 9.05%, respectively.  

The total secondary market Treasury bond/bill transacted volumes for 8 August was Rs. 17.90 billion.

In money markets, the net liquidity surplus remained high at Rs. 54.17 billion with overnight call money and repo rates reducing further to average 8.18% and 8.11%, respectively.

 Rupee losses further  

The USD/LKR rate on spot contracts were seen losing further yesterday to hit lows of Rs. 160.05 before closing marginally higher at Rs. 159.98/04 against its previous day’s closing levels of Rs. 159.92/00 on the back of continued importer demand. 

The total USD/LKR traded volume for 9 August was $ 92.68 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 160.80/90; 3 Months - 162.40/60 and 6 Months - 164.70/90.