Secondary market bond yields continue to decrease

By Wealth Trust Securities 

The yields in the secondary bond market maintained its decreasing trend across the yield curve yesterday as well, with continuous local buying and an increase in activity. The liquid maturities of 01.08.21, 15.05.23 and 15.06.27 were seen dipping to intraday lows of 11.60%, 11.70%, and 12%, respectively, against its previous days’ closing levels of 11.60/65, 11.70/80, and 11.95/05.

In addition, the 01.07.19, 15.09.19, 01.05.20, 15.12.21 and 15.03.25 maturities changed hands at levels of 10.08%, 10.50% to 10.55%, 11.30%, 11.70% and 11.75% as well. Meanwhile, in the secondary bill market, the latest 364-day maturity traded at levels of 11.10%.The total secondary market Treasury bond/bill transacted volumes for 4 December was Rs. 5.82 billion.  

In the money market, the OMO Department of the Central Bank infused a total amount of Rs. 38.5 billion at weighted average yields of 8.58% for overnight and 8.61% for seven days with the overnight net liquidity shortfall standing at Rs. 69.54 billion. The overnight call money rate averaged 8.90%.  

Rupee remains mostly unchanged  

The USD/LKR rate on spot contracts was seen closing the day mostly unchanged at Rs. 179.20/40.

The total USD/LKR traded volume for 5 December was $ 61.89 million. 

Given below are some forward USD/LKR rates that prevailed in the market, 1 month – 180.35/75, 3 months – 182.35/75, 6 months – 185.40/80

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.