Secondary market bond yields increase across the board

Friday, 17 August 2018 00:10 -     - {{hitsCtrl.values.hits}}

  • Rupee hits record low 

 

By Wealth Trust Securities

The secondary bond market witnessed an increasing trend in yields yesterday, for the first time in 14 days, on the back of considerable selling interest. The maturities of 2021’s (i.e. 01.03.21, 01.05.21, 01.08.21, 15.10.21 and 15.12.21), 01.10.22, 15.03.23, 15.07.23, 01.08.24, 15.10.25 and 15.03.28 saw its yields increase to intraday highs of 9.50%, 9.55% each, 9.60%, 9.80%, 9.90%, 10.00%, 9.95%, 10.03%, 10.15% and 10.30%, respectively. Furthermore, activity was also witnessed consisting of the 15.10.18, 15.01.19 and 15.09.19 maturities as well, at levels of 8.10%, 8.70% to 8.75% and 9.05%, respectively. 

The total secondary market Treasury bond/bill transacted volumes for 15 August was Rs.13.49 billion.

In money markets, overnight call money and repo rates averaged 7.92% and 7.87%, respectively, while the Open Market Operations (OMO) Department of the Central Bank was seen mopping up an amount of Rs.23.60 billion on an overnight basis at a weighted average of 7.53%. The net surplus liquidity decreased to Rs.34.91 billion. 

 Rupee losses

The rupee on spot contracts dipped to an intraday low of Rs.160.55 during the morning hours of trading on the back of continued importer demand before bouncing back to close the day at levels of Rs.160.40/50 when compared against the previous day’s closing levels of Rs.160.15/25.

The total USD/LKR traded volume for 15August was $ 139.80 million. 

Some of the forward USD/LKR rates that prevailed in the market were: One month – 161.20/40; three months – 162.85/05; six months – 165.20/50.

COMMENTS