Secondary bond market yields hold steady

• Secondary bill market yields continue to decline

 By Wealth Trust Securities

Secondary bond market yields remained mostly unchanged yesterday as activity moderated. 

Limited trades of the two 2019’s (i.e. 01.07.19 and 15.09.19), 01.05.20, 01.03.21 and 15.05.23 maturities were witnessed at levels of 9.60% to 9.65%, 9.75% to 9.77%, 9.91% and 10.10% respectively. Nevertheless, the secondary bill market remained active yesterday with bills maturing in January, February, March, July, August and September 2018 changing hands at lows of 8.45%, 8.54%, 8.65%, 9.10%, 9.20% and 9.30% respectively.

The total secondary market Treasury bond/bill transacted volumes for 8  November 2017 was Rs. 4.87 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 13 billion on an overnight basis by way of a repo auction at a weighted average of 7.25% as the net liquidity surplus in the system stood at Rs. 14.19 billion yesterday. The overnight call money and repo rates averaged 8.15% and 7.68% respectively.

 Rupee dips marginally

 The USD/LKR rate on spot contracts were seen depreciating marginally yesterday to close the day at levels of Rs.153.55/65 against its previous day’s closing levels of Rs.153.35/42 on the back of importer demand.

The total USD/LKR traded volume for 8 November 2017 was $ 122.00 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 154.45/55; 3 Months - 156.25/45 and 6 Months - 158.90/10.