Secondary market yields dip marginally on moderate volumes

Tuesday, 31 July 2018 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

In the secondary bond market, yields were seen declining marginally yesterday, mainly on the 01.08.21, 01.10.22, 15.03.23 and 15.10.25 maturities to daily lows of 9.80%, 10.05%, 10.13% and 10.26%, respectively, against its previous days closings of 9.80/90, 10.05/10, 10.18/20 and 10.30/40. In addition, the 01.07.19 and 01.03.21 was seen changing hands at levels of 9.25% and 9.78%, respectively, as well on the back of moderate volumes. 

In the secondary bill market, February 2019 bills were traded at levels of 8.85%.

The total secondary market Treasury bond/bill transacted volumes for 26 July was Rs. 1.15 billion.

In the money market, the OMO department of the Central Bank was seen draining out an amount of Rs. 15 billion on an overnight basis by way of a repo auction at a weighted average of 7.75% as the net surplus liquidity in the system increased to Rs. 35.71 billion yesterday. The overnight call money and repo rates averaged at 8.49% and 8.34% respectively.

Rupee depreciates marginally 

The USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs. 159.60/70 against its previous day’s closing levels of Rs. 159.55/65.

The total USD/LKR traded volume for 26 July was $ 37.35 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 160.45/65; 3 Months -              161.95/15 and 6 Months - 164.50/70.