Yields remain broadly steady as activity moderates

By Wealth Trust Securities

Secondary bond market yields remained broadly unchanged yesterday, as activity moderated. A limited amount of trades consisting of the 01.03.21, 01.09.23 and the two 2026 maturities (i.e. 01.06.26 and 01.08.26) was witnessed at levels of 9.75%, 10.17% to 10.20%, 10.28% and 10.27% respectively. Furthermore, the 2018 maturities were seen changing hands within the range of 8.40% to 9.26% as well.

The total secondary market Treasury bond/bill transacted volumes for 16 February was Rs. 6.01 billion. In money markets, the overnight call money and repo rates averaged at 8.13% and 7.60% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs.4.329 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%. In the meantime, the net surplus liquidity in the system stood at Rs. 17.70 billion.

Furthermore, the OMO Department also drained out an amount of Rs. 5.00 billion by way of a term repo auction at a weighted average of 7.35% for a period of 7 days.

Rupee dips

In the Forex market, the downward trend in the value of the rupee continued as the USD/LKR spot rate was seen closing the day at Rs. 155.35/45 against its previous day’s closing levels of Rs. 155.10/15, on the back of continued importer demand.

The total USD/LKR traded volume for 16 February was $ 38.50 million. Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 156.10/25; 3 Months - 157.75/90 and 6 Months - 160.15/25.