Activity in secondary bond market moderates

Friday, 9 November 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday with sentiment turning bearish. Limited trades were seen consisting of the 01.07.19 and 15.07.23 maturities at levels of 10.80% and 11.50%, respectively.

The total secondary market Treasury bond/bill transacted volumes for 7 November was Rs. 10.64 billion.

In the money market, overnight call money rate remained steady to average 8.47% as the OMO Department of the Central Bank was seen infusing liquidity by way of an overnight and a seven-day term repo auction for successful amounts of Rs. 24.15 billion and Rs. 20 billion, respectively, at weighted average yields of 8.46% and 8.50%. The net liquidity shortage in the system stood at a high of Rs.88.02 billion yesterday.

Rupee loses further

Continued buying interest from banks saw the rupee rate on spot contracts losing further to close at Rs. 175.10/20 against its previous day’s closing level of Rs. 174.85. The total USD/LKR traded volume for 7 November was $ 71.65 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 176.00/30, 3 months – 178.00/30, and 6 months – 181.00/40.