Secondary market bond yields edge up marginally

By Wealth Trust Securities

Secondary market bond yields increased marginally at the start of the week, with moderate volumes changing hands. Selling interest consisting mainly of the liquid maturities such as the 15.10.21 and 15.07.23 resulted in their yields edging up to intraday highs of 8.70% and 9.40% respectively against their previous day’s closing levels of 8.62/68 and 9.32/37. Furthermore, the 15.09.19 and two 2024’s (i.e. 15.06.24 & 01.08.24) maturities were seen changing hands at levels of 7.90%, 9.65% to 9.70% and 9.80% as well. In the meantime, continues buying in the secondary bill market, resulted in the 8 May 2020 maturity changing hands within the range of 7.90% to 8.15%. 

The total secondary market Treasury bond/bill transacted volumes for 02 August was Rs. 11.77 billion. 

In the money market, overnight call money and repo rates averaged at 7.80% and 7.79% respectively as the overnight net liquidity surplus increased to Rs. 37.46 billion. 

Rupee continues to depreciate

 A globally strengthening dollar along with continued buying interest by banks saw the USD/LKR rate depreciate further to close the day at Rs. 176.90/00 against its previous day’s closing levels of Rs. 176.60/68. 

The total USD/LKR traded volume for 02 August was $ 25.27 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 177.40/55; 3 months - 178.55/75 and 6 months - 180.15/45.