Bond yields increase for first time in four days

• Rupee dips for first time in five days

By Wealth Trust Securities

The secondary bond market yields increased yesterday in comparison to its previous days closings, recording its first day of increases following the presidential election. Yields on the liquid maturities of 2023’s (i.e.15.05.23, 15.07.23), 2024’s (i.e. 15.06.24 & 15.09.24) and 15.10.27 were seen increasing to intraday highs of 9.25%, 9.23%, 9.50%, 9.48% and 9.82% respectively against its previous day’s closing levels of  9.10/20 each, 9.35/43, 9.36/42 and 9.77/82. Furthermore, maturities of 01.05.20, 2021’s (i.e. 01.05.21, 01.08.21 & 15.12.21), 01.10.22, 01.09.23 and 15.01.27 were also traded within the range of 7.58%, 8.50% to 8.70%, 8.70%, 9.25% and 9.85% to 9.87% respectively.

In secondary bills, 29 May 2020 bill maturity changed hands at 7.50%.

The total secondary market Treasury bond/bill transacted volumes for 20 November was Rs. 32.61 billion. 

In money markets, the overnight call money and repo rates averaged 7.54% and 7.55% respectively as the overnight net liquidity surplus in the system increased further to Rs. 14.90 billion yesterday. The Open Market Operations (OMO) Department of Central Bank injected an amount of Rs. 15.35 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.52%. Furthermore it injected an amount of Rs. 9.00 billion for 14 days at a weighted average rate of 7.63%, valued yesterday.

Rupee loses

In the Forex market, the , the USD/LKR rate on spot contracts was seen depreciating yesterday for the first time in five days to close the day at Rs. 179.50/70 against its previous day’s closing levels of Rs. 179.20/35 on the back of buying interest by Banks.

The total USD/LKR traded volume for 20 November was $ 71.68 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 179.95/10; 3 months - 180.90/15 and 6 months - 182.60/90.