Home / Financial Services/ Bond yields increase on back of sluggish sentiment 

Bond yields increase on back of sluggish sentiment 

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 9 October 2018 00:00

By Wealth Trust Securities

The secondary bond market opened the week on a sluggish note as yields were seen increasing and widening yesterday as activity moderated considerably. 

Limited trades were seen on the seven year maturity on 15.10.25 and the 10-year maturity of 01.09.28 as its yields increased to trade at highs of 11.24% to 11.26% and 11.36% respectively against its previous day’s closing of 11.10/30 and 11.25/40. 

In addition, on the shorter end of the yield curve 2019 maturities (i.e. 01.05.19, 15.09.19, 01.07.19 and 01.11.19) were seen changing hands within the range of 9.50% to 10.10% as well. 

Meanwhile, April and August 2019 maturities in the secondary bill market were seen changing hands within the range of 9.75% to 9.95%.

The total secondary market Treasury bond/bill transacted volumes for 5 October was Rs.7.37 billion. 

In the money market, the overnight call money and repo rates averaged 8.39% and 8.33% respectively as the net liquidity shortfall in the system stood at Rs. 10 billion yesterday. 

The OMO Department of the Central Bank of Sri Lanka injected an amount of Rs. 6 billion on an overnight basis by way of a Reverse Repo auction at a weighted average rate of 8.25% while a further amount of Rs. 8.37 billion was infused by way of a 14 day reverse repo auction at a weighted average of 8.26%, valued today.

Rupee losses further  

 The USD/LKR rate on spot contracts depreciated further to close the day at levels of Rs. 170.65/80 against its previous day’s closing levels of Rs. 170.35/55 on the back of continued importer demand and a globally strengthening dollar.

The total USD/LKR traded volume for 5 October was $ 26.00 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month – 171.85/00; three months – 173.70/95; six months – 176.60/95.

Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Finishing the job of ending poverty in South Asia

Thursday, 18 October 2018

“I have a four-year-old son back in my village. I want to make a better life for him,” says Sharmin Akhtar, a 19-year-old employee in one of Dhaka’s many flourishing garment factories. Like thousands of other poor women, Sharmin came down to B

Depreciating rupee: Avoiding a money-go-round

Wednesday, 17 October 2018

Sri Lanka’s excessive reliance on foreign capital to finance investment under favourable external financial conditions is now leading to disruptions, as those conditions change in a decisive interest rate tightening phase in the United States. As U

Responsible water stewardship in Sri Lanka

Wednesday, 17 October 2018

Unlike many of our regional neighbours, Sri Lanka is blessed with an abundant water table. However, many companies do not feel the full value of this precious resource due to the limited regulation and monitoring of fresh water extraction for busines

Economy in disarray, banks flourishing; can this be true?

Wednesday, 17 October 2018

It is earlier reported that the growth in bank credit accelerated in August despite the tight credit and money conditions and rising non-performing loans in the banking sector. It is further reported that the year-on-year (YoY) growth in credit accel

Columnists More