Secondary bond market activity moderates

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday with most market participants on the sidelines.

Limited trades of the 2018 and 01.08.26 maturities were witnessed at levels of 8.60% to 9.00% and 10.35%, while in the secondary bill market, April and November 2018 maturities changed hands at levels of 8.20% and 9.00% to 9.10% respectively.

The total secondary market Treasury bond/bill transacted volumes for 21 February was Rs. 2.82 billion.

In money markets, overnight call money and repo rates remained mostly unchanged to average 8.14% and 7.55% with the net surplus liquidity in the system standing at Rs. 12.87 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 4.4 billion on an overnight basis at a weighted average of 7.25%, while an additional Rs. 8.6 billion was deposited at its Standing Deposit Facility Rate (SDFR) of 7.25%.

Rupee dips once again

In the Forex market, the USD/LKR rate on spot depreciated marginally yesterday to close the day at Rs. 155.20/30 against its previous day’s closing levels of Rs. 155.15/25.

The total USD/LKR traded volume for 21 February was $ 78.45 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 155.95/15; three months - 157.70/85 and six months - 160.00/15.