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

Facebook Twitter


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Whither Sri Lanka?

Wednesday, 19 June 2019

On Easter Sunday, 21 April 2019, suicide bombers from an extremist group caused carnage in six separate locations in Sri Lanka. Over 250 lives were lost and as many injured. The magnitude and co-ordination of their operation indicate several months o

Our Cricket Board simply cannot deliver – why not they all quit honourably?

Tuesday, 18 June 2019

“It is necessary, therefore, for the Government to pay serious attention to the doings of Sri Lanka Cricket [board] and take immediate action to lift their game for the progress of our glorious game.” Question for Sri Lanka Cricket (board) Sri La

Yesterday Tamils, today Muslims and tomorrow who?

Tuesday, 18 June 2019

From the time of S.W.R.D. Bandaranaike’s election victory in 1956, one and only one issue had dominated political party campaigns in this country; and that was communalism. The Tamil community was the main focus of these campaigns for over 50 years

Those who go by social proof are easy prey to crafty schemers

Monday, 17 June 2019

Going after social proof Swiss writer and novelist, Rolf Dobelli, in one of the essays in his 2013 book ‘The Art of Thinking Clearly’, has given a fine warning to his readers. He has warned against going by ‘social proof’ or ‘majority view

Columnists More