Secondary bond market yields broadly steady

By Wealth Trust Securities

The secondary bond market saw its activity moderate yesterday as yields were seen closing the day broadly steady subsequent to increasing in the morning hours of trading. 

Selling interest saw yields on the three 2021’s (i.e. 01.03.21, 01.08.21 and 15.12.21), 01.08.24, two 2025’s (i.e. 15.03.25 and 01.08.25) and 01.08.26 increasing to intraday highs of 10.07%, 10.05%, 10.06%, 10.30%, 10.35% each respectively against its previous day’s closing levels of 9.95/00, 9.97/00, 9.95/98, 10.12/18, 10.25/35, 10.22/30 and 10.27/33. However, average foreign appetite at these levels saw yields decreasing once again to hit intraday lows of 9.93%, 10.02%, 9.98%, 10.12%, 10.33%, 10.32% and 10.30% respectively. In secondary bills market, selling interest saw March, April, July and September 2018 maturities changing hands at levels of 8.96% to 9.05%, 8.98% to 9.10%, 9.10% to 9.25% and 9.13% respectively.

The total secondary market Treasury bond/bill transacted volume for 13 September 2017 was Rs. 17.04 billion.

Meanwhile, in money markets, the OMO Department of Central Bank was seen draining out in total an amount of Rs. 3.10 billion by way of two outright sales of Treasury bills at weighted average rates of 8.38% and 8.40% for 35 and 42 days respectively. It further drained out an amount of Rs. 19.48 billion on an overnight basis at a weighted average of 7.27% by way of a repo auction as net surplus liquidity in the system increased once again to Rs. 30.24 billion yesterday. The overnight call money and repo rates averaged 7.95% and 8.01% respectively.

Rupee remains 

mostly unchanged

In the Forex market, the USD/LKR rate on the spot rate remained mostly unchanged yesterday to close the day at Rs. 152.95/05 as markets were in equilibrium.

The total USD/LKR traded volume for 13 September was $ 140.00 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.65/75; three months - 155.10/20 and six months - 157.20/30.