Secondary bond market yields remain mostly unchanged

By Wealth Trust Securities

The secondary bond market closing yields remained mostly unchanged yesterday as the liquid maturities of 01.08.26 and two 2027’s (i.e. 15.01.27 and 15.06.27) were seen changing hands at levels of 11.35% to 11.39% and 11.40% each respectively. Furthermore, activity on the long end of the curve saw the 01.09.28 and 01.05.29 maturities changing hands at levels of 11.48% and 11.51% to 11.62% respectively as well. In the secondary bill market, the 364 day bill was traded at 10.68%.

The total secondary market Treasury bond/bill transacted volumes for 13 February was Rs. 3.77 billion.

In the money market, the net liquidity shortfall stood at Rs. 66.51 billion yesterday with call money and repo averaging 9.00%. The OMO department of Central Bank was seen infusing liquidity by way of an overnight and a seven day term repo auction for successful amounts of Rs. 7.34 billion and Rs. 3.95 billion respectively at weighted averages of 8.93% and 8.98%. A further total amount of Rs. 1.9 billion was injected by way of outright purchases of Treasury bills at weighted averages ranging from 10.18% to 10.50% for duration of 266 days to 301 days, valued today.

Rupee trades within a narrow range 

The USD/LKR rate on spot contracts was seen trading within the range of Rs.178.60 to Rs.178.75 in comparison to the previous day’s closing levels of Rs.178.40/55.

The total USD/LKR traded volume for 13 February was $ 78.09 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 179.40/70; 3 months - 181.30/70 and 6 months - 184.25/65.