Bond yields increase marginally in moderate trade

By Wealth Trust Securities

The secondary bond market yields were seen increasing marginally yesterday on the back of moderate volumes changing hands. The yields on the liquid two maturities of 15.07.23 and 15.03.24 increased to intraday highs of 9.90% and 9.97% against its opening lows of 9.85% and 9.92% while the maturities of 01.08.24, two 2026’s (i.e. 01.06.26 and 01.08.26), 15.01.27 and 01.09.28 were seen hitting highs 10.10%, 10.30%, 10.27%, 10.30% and 10.43% respectively against its previous day’s closing levels of 10.00/10, 10.15/25, 10.20/25, 10.25/27 and 10.35/45. In addition, the maturities of 2021’s (i.e. 01.08.21, 15.10.21 & 15.12.21), two 2022’s (i.e. 01.07.22 & 01.10.22), 15.12.23 and 01.01.24 traded at levels of 9.35% to 9.42%, 9.77% to 9.82%, 9.93% and 10.00% respectively as well. The total secondary market Treasury bond/bill transacted volumes for the 22 May was Rs. 25.48 billion. 

In money markets, the overnight net surplus liquidity in the money market was seen decreasing further to Rs. 10.57 billion yesterday as the Open Market Operations (OMO) Department of Central Bank refrained from conducting any cash value auctions. Nevertheless, it drained out an amount of Rs. 21.1 billion by way of ten day repo auction at weighted averages of 8.67%, valued today. The overnight call money and repo rates averaged 8.50% and 8.56% respectively.

 Rupee closes stronger

 The selling interest by banks on forward and spot contracts saw the USD/LKR rate appreciate yesterday to close the day at Rs. 176.30/40 subsequent to dipping to an intraday low of Rs. 176.85 against its previous day’s closing of Rs. 176.65/80.

The total USD/LKR traded volume for the 22 May was $36.68 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 177.15/30; 

Three months - 178.80/00 and six months - 181.30/50.