Home / Financial Services/ Upward momentum in secondary bond market yields continue

Upward momentum in secondary bond market yields continue

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 11 September 2018 00:00

By Wealth Trust Securities

The selling interest mainly on the 15.12.21 and 15.06.27 maturities led to its yields increasing and in turn saw two-way quotes on the rest of the yield curve increasing as well in choppy trading yesterday. 

The said two maturities were seen hitting intraday highs of 9.72% and 10.37% respectively against its previous day’s closing levels of 9.65/70 and 10.25/30 while the maturities of the two 2020s (i.e. 01.05.20 and 15.12.20), 01.03.21, 15.07.23 and two 2026’s (i.e. 01.06.26 and 01.08.26) inched higher to levels of 9.32% to 9.39%, 9.53% to 9.55%, 10.00% to 10.02% and 10.25% to 10.30% respectively as well. In the secondary bill market, the 22nd February 2019 maturity changed hands at levels of 8.40%.

The total secondary market Treasury bond/bill transacted volumes for 7 September was Rs.4.83 billion.

In the money market, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka refrained from conducting any auctions yesterday as the net surplus liquidity decreased to Rs.15.77 billion. The overnight call money and repo rates averaged at 7.88% and 8.01% respectively.

Rupee losses    

 The USD/LKR rate on spot contracts depreciated yesterday to close the day at Rs.162.35/50 against its previous day’s closing levels of Rs.162.00/20 on the back of continued importer demand.

The total USD/LKR traded volume for 7 September was $ 43.67 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 163.15/45; three months – 164.65/95; six months – 167.15/45.

Share This Article


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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


Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit

Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi

The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation

Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc

Columnists More