Downward trend in bond yields continue

By Wealth Trust Securities

The downward spiral in bond yields continued yesterday as well with yields on the liquid maturities of 15.12.22, 15.01.23, 15.09.24, 01.05.25, 01.02.26 and 15.10.27 hitting intraday lows of 5.70%, 5.85%, 6.32%, 6.55%, 6.75% and 6.90% respectively against its previous day’s closing levels of 5.95/05, 6.05/15, 6.65/70, 6.85/90, 6.95/02 and 7.10/20. In addition, maturities of 2021s (i.e. 01.05.21 & 15.10.21), 01.07.22, 2023’s (i.e. 15.03.23, 15.05.23, 15.07.23 & 01.09.23) and 2024s (i.e. 15.03.24 & 15.06.24) were traded at levels of 5.40% to 5.60%, 5.85%, 6.00% to 6.20% and 6.35% to 6.55%.

In the secondary bill market, October 2020, November2020, December 2020 and June 2021 maturities changed hands at levels of 5.05% to 5.20%, 5.34% to 5.40%, 5.55%, and 5.02% to 5.25% respectively.  

The total secondary market Treasury bond/bill transacted volume for 24 June was Rs. 38.91 billion.   In money markets, the weighted average rates on overnight call money and repo were recorded at lows of 5.52% and 5.55% respectively as the DOD (Domestic Operations Department) of Central Bank continued to refrain from conducting any auction. The overnight net liquidity surplus in the system stood at a high of Rs. 209.13 billion yesterday.

 Rupee appreciates  

In Forex markets, the USD/LKR on spot contracts were seen appreciating yesterday to close the day at Rs. 186.30/45 against its previous day’s closing days of Rs. 186.60/70 on the back of selling interest by Banks.

The total USD/LKR traded volume for 24 June was $ 84.88 million.  

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)