Bond market at a standstill as sluggish momentum continues

Tuesday, 10 October 2017 00:01 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market was at a standstill yesterday with a limited amount of trades seen on the two 2021 maturities (i.e. 01.03.21 and 01.08.21) at levels of 10.08% to 10.10%.

Yields along the rest of the yield curve were seen closing the day broadly steady against its previous trading day’s closings levels.

The total secondary market Treasury bond/bill transacted volumes for 6 October 2017 was Rs. 5.76 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.14% and 7.96% respectively as the net surplus liquidity in the system increased further to Rs. 19.98 billion yesterday. The OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs. 10.00 billion on an overnight basis by way of a repo auction at a weighted average of 7.26%.

Rupee trades within a narrow range

In the Forex market, the USD/LKR spot rate was seen trading within a narrow range of Rs. 153.27 to Rs. 153.33 against its previous day’s closing level of Rs. 153.20/28.

The total USD/LKR traded volume for 6 October 2017 was $ 63.20 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.20/30; three months - 155.90/00 and six months - 158.05/15.

The closing, secondary market yields of the most frequently traded T-bills and bonds