Bond yields close on mixed note

By Wealth Trust Securities 

The secondary bond market yields closed the day on a mixed note yesterday as yields on the 2024 maturities increased marginally and yields on the 2027 maturities decreased marginally, while two way quotes on the rest of the yield curve remained broadly steady. 

The 15.06.24 & 15.09.24 changed hands within the range 9.55% to 9.60% and 15.06.27 & 15.10.27) within 9.77% to 9.83% against its previous day’s closings of 9.50/55, 9.52/55, 9.80/90 and 9.80/85 respectively. In secondary bills, August 2020, December 2020 and January 2021 maturities traded at levels of 8.26%, 8.35% and 8.43% to 8.44% respectively. 

The total secondary market Treasury bond/Bill transacted volume for 1 January was Rs. 13.83 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka infused an amount of Rs. 20.00 billion at a weighted average of 7.49% by way of an overnight reverse repo auction as the overnight net liquidity surplus in the system decreased to Rs. 27.70 billion yesterday. The overnight call money and repo rates averaged at 7.49% and 7.52% respectively.

 Rupee loses once again

In the Forex market, the USD/LKR rate on spot contracts was seen depreciating yesterday to close the day at Rs. 181.30/45 against its previous day’s closing levels of Rs. 181.15/25 on the back of buying interest by Banks. 

The total USD/LKR traded volume for t 1 January was $ 58.50 million.

Some of the forward USD/LKR rates that prevailed in the market were: 1 month - 181.80/00; 3 months - 182.75/00 and 6 months - 184.35/65.