Secondary market bond yields increase marginally

By Wealth Trust Securities

In the secondary bond market yesterday, yields were seen increasing marginally once again mainly on the liquid 01.08.25 and 01.08.26 maturities to intraday day highs of 10.40% and 10.25% respectively and closed the day at 10.25/35 and 10.20/30 against its previous day’s closing level of 10.20/25 and 10.18/20. 

In addition, the two 2021’s (i.e. 01.05.21 and 01.08.21), 01.09.23, 01.09.28 and 15.05.30 maturities were seen changing hands at levels of 9.95% to 9.98%, 9.98% to 10.06%, 10.45% and 10.65% respectively while in the secondary bill market, January and July 2017 maturities were seen changing hands at levels of 8.95% and 9.25% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 15 September 2017 was Rs.6.52 billion.

In money markets, the overnight call money and repo rates averaged 8.03% and 7.95% respectively as net surplus liquidity in the system stood at Rs.39.81 billion yesterday. The OMO department of the Central Bank drained out an amount of Rs. 18.46 billion on an overnight basis at a weighted average of 7.27% by way of a repo auction.

Further, in an attempt to drain out liquidity on a term basis, the OMO department drained out in total an amount of Rs. 4 billion by way of two outright sales of Treasury bills at weighted average rates of 8.50% and 8.60% for 38 and 45 days respectively, valued today.

 Rupee losses

 In the Forex market, the USD/LKR rate on the spot rate lost ground yesterday to close the day at Rs. 153.05/15 against its previous day’s closing levels of Rs. 152.82/92 on the back importer dollar demand.

The total USD/LKR traded volume for 15 September 2017 was $ 65.00 million.

Some of forward USD/LKR rates that prevailed in the market were one month - 153.70/90; three months - 155.20/40 and six months - 157.30/50.