Dull sentiment in bond market continues

Friday, 15 November 2019 00:00 -     - {{hitsCtrl.values.hits}}



  • OMO buys bonds once again

By Wealth Trust Securities

The dull sentiment in the secondary bond market continued yesterday as most market participants persisted on been on the sidelines ahead of the upcoming presidential elections. Limited trades were witnessed on the maturities of 2022’s (i.e.01.07.22 & 01.10.22), 15.09.24, 15.10.27 and 15.09.34 at levels of 9.08%, 9.10%, 10.07%, 10.31% to 10.32% and 10.70% respectively.

In secondary bills markets, the latest 364 day bill was seen changing hands at 8.60% once again.

The total secondary market Treasury bond/bill transacted volume for 8 November was Rs. 11.04 billion. 

In money markets, the overnight call money and repo rates averaged 7.53% and 7.54% respectively as the overnight net liquidity surplus in the system increased to Rs.12.49 billion yesterday. The Open Market Operations (OMO) Department of Central Bank injected an amount of Rs.14.5 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.53%.

It further injected liquidity by way of outright purchases of Treasury bonds for a total successful volume of Rs.3 billion on the maturities of 15.03.22, 01.07.22 and 01.10.22 respectively at weighted averages of 9.03%, 9.12% and 9.20%, valued today.

Rupee closes marginally lower   

In the Forex market, the rupee on sport contracts were seen closing the day marginally lower at Rs. 180.35/45 against its previous day’s closing level of Rs. 180.25/35, subsequent to trading within the range of Rs. 180.10 to Rs. 180.40.

The total USD/LKR traded volume for 13 November was $ 45.45 million.

Some forward USD/LKR rates that prevailed in the market were 1 month - 180.85/05, 3 months - 181.95/25 and 6 months - 183.70/10.