Bond yields broadly steady in thin trade

Tuesday, 8 October 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The commencement of a fresh week saw the bearish sentiment in the secondary bond market continue with limited trades witnessed yesterday.

The maturities of 01.10.22, 15.09.24, 15.06.27 and 15.09.34 changed hands at levels of 9.35%, 10.25%, 10.50% to 10.52% and 10.74% respectively.

The total secondary market Treasury bond/bill transacted volume for 4 October 2019 was Rs. 3.87 billion. Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

Meanwhile, in money markets, the OMO Department of the Central Bank drained out liquidity by way of an overnight repo auction for a successful amount of Rs. 9 billion at a weighted average yield of 7.42% as the overnight net liquidity surplus in the system increased to Rs. 33.66 billion yesterday. The overnight call money and repo rates averaged 7.44% and 7.48% respectively.

Rupee appreciates

The USD/LKR rate on spot contracts was seen appreciating yesterday to close the day at Rs. 180.85/95 against its previous day’s closing levels of Rs. 181.30/45 on the back of selling interest by banks and export conversions.

The total USD/LKR traded volume for 4 October 2019 was $ 51.61 million.

Given below are some forward USD/LKR rates that prevailed in the market.

1 Month - 181.50/70

3 Months - 182.50/80

6 Months - 184.20/50