Secondary market bond yields continue to increase

The secondary market bond yields were seen increasing further yesterday, mainly on the short end to the belly end of the yield curve on the back of selling interest. The yields on the liquid maturities of 01.08.21, 2023’s (15.05.23 & 15.12.23), 2024’s (15.03.24 & 15.06.24) and 15.01.27 were seen increasing to intraday highs of 8.73%, 9.60%, 9.75%, 9.82%, 9.90% and 10.10% respectively against its opening lows of 8.65%, 9.58%, 9.70%, 9.76%, 9.82% and 10.05%. In addition, on the long end of the curve, the 01.05.29 and 15.08.39 were seen changing hands at levels of 10.10% and 10.28% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 13 August was Rs. 7.02 billion. 

The Open Market Operations (OMO) Department of the Central Bank looked to inject a total amount of Rs. 6 billion by way of three outright auctions to purchase Treasury bills for durations ranging from 273 days to 287 days. However, only a total amount of Rs. 750 million was injected for durations of 280 and 287 days at weighted averages of 7.85% and 7.89% respectively. In addition, amounts of Rs 5.40 billion and 10.50 billion were injected by way of overnight and 7 day reverse repo auctions at weighted averages of 7.76% and 7.78% respectively as well. Call money and repo averaged 7.79% and 7.92% respectively yesterday as the overall net liquidity surplus on an overnight basis stood at Rs. 34.61 billion. 

Rupee dips further

 The Interbank USD/LKR rate on spot contracts dipped further yesterday to close the day at Rs. 177.05/15 against its previous day’s closing levels of Rs. 176.90/00 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 13 August was $ 80.75 million.

Some forward USD/LKR rates that prevailed in the market are: 1 month - 177.45/60; 3 months - 178.45/65; 6 months - 180.10/40.