Activity in secondary bond market moderates

Tuesday, 28 August 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday, with limited trades of the 15.11.18 and 2019 maturities (i.e. 01.07.19 and 15.09.19) taking place at levels of 8.12% and 9.00% to 9.06% respectively.

Furthermore, the 15.10.25 maturity too changed hands at 10.16%. In the secondary bill market, January and May 2019 maturities were traded at levels of 8.50% and 8.88% to 8.91% respectively.

The total secondary market Treasury bond/bill transacted volumes for the 24t of August 2018 was Rs.9.27 billion. The OMO (Open Market Operations) Department of the Central Bank was seen draining out liquidity by way of a term repo auction and an overnight repo auction, with the net liquidity surplus in the system standing at Rs.20.79 billion. The two day term Repo auction drained out an amount of Rs.12 billion at a weighted average of 7.65% while a further Rs.3.13 billion was drained out by the overnight auction at a weighted average of 7.56%. Call money and repo rates averaged 7.78% and 7.67% respectively.

Rupee continues to slide

The USD/LKR rate on spot contracts were seen depreciating further yesterday to close the day at Rs.161.05/15 against its previous weeks closing level of Rs.160.85/00 on the back of importer demand. The total USD/LKR traded volume for 24 August was $ 28.25 million. Given are some forward USD/LKR rates that prevailed in the market: One month – 161.85/05; three months – 163.40/70; six months – 165.85/15.