Secondary bond market yields increase on moderate volumes

By Wealth Trust Securities

The secondary market bond yields were seen increasing yesterday on the back of moderate trading. 

The 15.05.30 maturity was the most traded duration as it was seen hitting an intraday high of 10.60% against its previous day’s closing levels of 10.45/50. 

In addition, limited trades on the 01.05.19, 01.08.21, and 01.08.26 maturities were witnessed at levels of 9.67%, 10.05% and 10.13% respectively while two way quotes on the rest of the yield curve were seen increasing as well.

The total secondary market Treasury bond/bill transacted volumes for 10 November was Rs.2.38 billion.

Meanwhile in money markets, the net surplus liquidity of Rs.22.28 billion saw overnight call money and repo rates remain mostly unchanged to average 8.15% and 7.67% respectively yesterday. 

The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs.11.45 billion on an overnight basis by way of a Repo auction at a weighted average of 7.25%.

 Rupee remains 

mostly unchanged

 The USD/LKR rate on spot contracts was seen closing the day mostly unchanged at Rs.153.57/62. The total USD/LKR traded volume for 10 November was $ 120.00 million. Given are some forward USD/LKR rates that prevailed in the market: one month – 154.42/60; three months – 156.20/50; six months – 158.80/00.