Bond yields decrease further

Tuesday, 15 October 2019 00:00 -     - {{hitsCtrl.values.hits}}

 


By Wealth Trust Securities

The start of a new trading week saw secondary market bond yields decreasing further on the back of continued buying interest. 

The most demanded maturities of two 2023s (i.e. 15.07.23 and 15.12.23) and three 2024s (i.e. 15.03.24, 15.06.24 and 15.09.24) saw its yields hit intraday lows of 9.65%, 9.75%, 10.01% and 10.09% respectively against its Friday’s closing levels of  9.65/70, 9.75/85, 10.05/12 each and 10.10/13. 

In addition, the maturities of 2021s (i.e. 01.03.21, 15.10.21 and 15.12.21), 01.09.28 and 15.09.34 changed hands at levels of 8.63% to 8.70%, 10.44% to 10.53% and 10.70% respectively as well. In the secondary bill market, the 9 October 2020 maturity changed hands at levels of 8.31% to 8.38%.

The total secondary market Treasury bond/bill transacted volume for 11 October was Rs.9.10 billion. 

Meanwhile in money markets, the Open Market Operations (OMO) Department of Central Bank was seen injecting an amount of Rs. 10 billion by way of a seven day Reverse repo auction at a weighted average rate of 7.63% as the overnight net liquidity surplus in the system decreased to Rs. 1.84 billion yesterday. The overnight call money and repo rates averaged 7.49% and 7.52% respectively.

 Rupee loses

 The USD/LKR rate on its spot contract lost its value further yesterday to close at Rs.180.95/10 against its previous day’s closing levels of Rs.180.65/75 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 11 October was $ 41.06 million

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.65/85; three months – 182.75/05; six months – 184.40/80.

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