Bond market closes positive subsequent to yields fluctuating

By Wealth Trust Securities

The momentum in the secondary bond market closed on a positive note yesterday subsequent to yields increasing in morning hours of trading as buying demand was seen outweighing selling interest.

The increase saw yields on the liquid maturities of 15.12.22, 15.01.23, 15.09.24, 01.05.25, 01.02.26 and 15.10.27 hitting intraday highs of 6.45%, 6.50%, 7.16%, 7.27%, 7.40% and 7.60% respectively against its Friday’s closing levels of 6.25/35, 6.30/40, 6.95/00, 7.12/18, 7.20/30 and 7.47/52. 

However, buying interest from this level onwards saw yields tumble once again to intraday lows of 6.20%, 6.26%, 6.97%, 7.11%, 7.26% and 7.38% respectively. In addition, maturities of 01.05.21, 01.10.22, 15.03.23, 15.07.23, 01.09.23, 01.01.24, 15.03.24, 15.06.24 and 01.06.26 were seen changing hands at levels of 5.80% to 5.90%, 6.27%, 6.35%, 6.50%, 6.53% to 6.55%, 6.72% to 6.80%, 6.85%, 6.93% and 7.31% to 7.32% respectively as well.

In secondary bills, January 2021 bills were traded at 5.78% to 5.80%.

The total secondary market Treasury bond/bill transacted volume for 19 June was Rs. 45.32 billion.  

In money markets, the weighted average rates on overnight call money and repo rates were recorded at 5.65% and 5.71% respectively as the overnight net liquidity surplus in the system stood at Rs. 202.45 billion yesterday. 

Rupee remains mostly unchanged  

In Forex markets, the USD/LKR on spot contracts was remained mostly unchanged to close the day Rs. 186.60/70.

The total USD/LKR traded volume for 19 June was $ 66.43 million.  

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)