Home / Financial Services/ Secondary market bond yields fluctuate during the week

Secondary market bond yields fluctuate during the week


Comments / {{hitsCtrl.values.hits}} Views / Monday, 8 October 2018 00:00

Facebook

  • Foreign selling in rupee bonds continue 

By Wealth Trust Securities

The secondary bond market witnessed a round of fresh buying interest during the week ending 5 October subsequent to the monetary policy announcement at where policy rates were kept unchanged against market expectations. The rejection of all bids received for the weekly Treasury bill auction due to market participants seeking higher yields added further imputes to the downward momentum.

Trades were mainly seen on the market favourite two maturities of 15.10.21 and 15.07.23 as its yields were seen dipping from its weeks opening highs of 11.10% and 11.28% respectively to weekly lows of 10.60% and 10.85%. In addition, buying interest along the rest of the yield curve during mid-week saw the maturities of the two 2020’s (i.e. 01.05.20 and 15.12.20), four 2021’s (i.e. 01.03.21, 01.05.21, 01.08.21 and 15.12.21), 15.03.23, two 2025’s (i.e. 15.03.25 and 15.10.25), two 2026’s (i.e. 01.06.26 and 01.08.26) and two 2028’s (i.e. 15.03.28 and 01.09.28) dip to weekly lows of 10.10%, 10.50%, 10.87%, 11.10%, 11.18% and 11.28% respectively within the ranges it traded against its weekly highs of 10.34%, 11.00%, 11.02%, 11.55%, 11.35% and 11.40%. 

Furthermore, the foreign holding in rupee bonds continued to decline for a fifth consecutive week, recording an outflow of Rs. 1.80 billion for the week ending 3 October.

The daily secondary market Treasury bond/bill transacted volume through the first four days of the week averaged Rs. 6.08 billion. 

In money markets, the call money and repo rates averaged 8.43% and 8.31% respectively for the week as net liquidity shortfall in the system fluctuated from a high of Rs. 46.24 billion to a low of Rs. 5.83 billion. The Open Market Operations (OMO) Department of Central Bank was seen injecting liquidity throughout the week by way of overnight and 7 to 14 days reverse repo auctions at weighted averages ranging from 8.14% to 8.29%. Liquidity was further injected by way of outright purchases of Treasury bills for durations ranging from 127 days to 155 days at weighted averages of 8.63% to 8.84%.

Dollar strengthens further 

In the Forex market, a globally strengthening dollar and foreign outflows from the local capital markets (i.e. government security market and stock market) coupled with continued importer demand saw the rupee on its spot contracts losing further to hit a new low of Rs. 170.42 and close the week at Rs. 170.35/55 against its previous weeks closing levels of Rs. 169.20/40.

The daily USD/LKR average traded volume for the first four days of the week stood at $ 60.00 million.

Some of the forward dollar rates that prevailed in the market were 1 Month - 171.40/80; 3 Months - 173.40/80 and 6 Months - 176.10/60.

 

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Whither Sri Lanka?

Wednesday, 19 June 2019

On Easter Sunday, 21 April 2019, suicide bombers from an extremist group caused carnage in six separate locations in Sri Lanka. Over 250 lives were lost and as many injured. The magnitude and co-ordination of their operation indicate several months o


Our Cricket Board simply cannot deliver – why not they all quit honourably?

Tuesday, 18 June 2019

“It is necessary, therefore, for the Government to pay serious attention to the doings of Sri Lanka Cricket [board] and take immediate action to lift their game for the progress of our glorious game.” Question for Sri Lanka Cricket (board) Sri La


Yesterday Tamils, today Muslims and tomorrow who?

Tuesday, 18 June 2019

From the time of S.W.R.D. Bandaranaike’s election victory in 1956, one and only one issue had dominated political party campaigns in this country; and that was communalism. The Tamil community was the main focus of these campaigns for over 50 years


Those who go by social proof are easy prey to crafty schemers

Monday, 17 June 2019

Going after social proof Swiss writer and novelist, Rolf Dobelli, in one of the essays in his 2013 book ‘The Art of Thinking Clearly’, has given a fine warning to his readers. He has warned against going by ‘social proof’ or ‘majority view


Columnists More