Secondary market bond yields decrease

By Wealth Trust Securities

The secondary bond markets remained active yesterday as yields were seen decreasing across the yield curve. Buying interest on the two 2023’s (i.e. 15.03.23 and 15.05.23), 01.08.25, two 2028’s (i.e. 15.03.28 and 01.09.28) and the 15.05.30 saw its yields decrease to intraday lows of 10.40%,  10.42%, 10.58%, 10.60% each and 10.72% respectively against its previous day’s closing levels of 10.42/45, 10.43/50, 10.52/62, 10.60/70, 10.62/70 and 10.70/80. In addition, on the short end of the curve, 2019, 2020 and 2021 maturities were seen changing hands within the range of 9.37% to 9.50%, 9.75% to 9.85% and 9.88% to 10.10% respectively as well. In the secondary bill market, April, May and June 2019 maturities were traded within the range of 9.25% to 9.37%.

In money markets, the overnight call money and repo rates increase marginally to average 8.33% and 8.40% respectively as the net deficit in the system increased to Rs. 9.01 billion yesterday. The OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 10.00 billion at a weighted average yield of 8.50%, by way of an overnight reverse repo auction.

Rupee remains mostly unchanged

The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at Rs. 159.65/80.

The total USD/LKR traded volume for 12 June was $ 59.30 million.

Some of the forward USD/LKR rates that prevailed in the market were: 1 month - 160.45/65; 3 months - 162.05/35 and 6 months - 164.30/60.