Secondary bond market yields steady on moderate trading

By Wealth Trust Securities

The secondary bond market yields remained mostly unchanged yesterday on moderate trading. Limited trades of 15.09.19, 01.05.20, three 2021’s (i.e. 01.03.21, 01.05.21 and 01.08.21), 15.03.23 and 15.06.27 maturities were witnessed at levels of 9.62% to 9.67%, 9.75%, 9.90% to 10.02%, 10.35% to 10.40% and 10.65%, respectively. In the secondary bill market, December 2018 and February 2019 bills traded at levels of 8.92% and 9.30% respectively.

The total secondary market Treasury bond transacted volume for the 1 June was Rs. 14.08 billion.

In money markets, the OMO Department of the Central Bank injected an amount of Rs. 8 billion at a weighted average of 8.50% by way of an overnight reverse repo auction as the net liquidity in the system stood at a deficit of Rs. 13.19 billion yesterday. Overnight call money and repo rates averaged 7.95% and 7.96%, respectively.

Rupee appreciates

In the Forex market, the USD/LKR rate on the spot contract were seen closing the day at Rs. 158.45/55 against its previous day’s closing levels of Rs. 158.55/70, subsequent to trading within the range of Rs. 158.47 to Rs. 158.50.

The total USD/LKR traded volume for the 1 June 2018 was $73.00 million. Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 159.15/40; 3 Months - 160.75/00m and 6 Months - 163.05/30.