Bond yields decrease for the first time in four days

Friday, 19 January 2018 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields were seen decreasing yesterday on moderate volumes subsequent to three days of increases, on the back of local buying interest. 

Buying interest in the morning hours of trading saw yields decrease on the three 2021s (i.e. 01.03.21, 01.05.21 and 01.08.21), two 2026s (i.e. 01.06.26 and 01.08.26) and 15.06.27 to intraday lows of 9.20%, 9.25%, 9.28%, 9.66%, 9.65% and 9.72% respectively against its previous day’s closing levels of 9.30/40 each, 9.85/90 each and 9.85/95. However, selling interest at these levels curtailed the downward trend as yields were seen closing the day marginally higher once again. 

The total secondary market Treasury bond/bill transacted volumes for 17 January 2018 was Rs. 7.58 billion. In money markets, the overnight call money and repo rate averaged 8.17% and 7.54% respectively as the net surplus liquidity in the system stood at Rs. 1.91 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 3.00 billion on an overnight basis by way of a repo auction at a weighted average of 7.28%.

Rupee loses again

In the Forex market, the USD/LKR rates on spot contracts were seen depreciating once again to close the day at Rs. 153.86/90 respectively against its previous day’s closing levels of Rs. 153.75/85 on the back of renewed importer demand.

The total USD/LKR traded volume for 17 January 2017 was $ 51.88 million.

Some of the forward USD/LKR rates that prevailed in the market: One month - 154.70/85; three months - 156.35/50 and six months - 158.70/85.