Bond yields decrease marginally

Tuesday, 23 July 2019 01:08 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The commencement of the trading week saw secondary market bond yields declining once again yesterday on the back of renewed buying interest. The yields on the liquid maturities of 15.07.23, two 2024’s (i.e. 15.03.24 & 15.06.24), 01.08.26 and 15.01.27 were seen dipping to intraday lows of 9.55%, 9.75%, 9.80%, 9.92% and 9.97% respectively against its previous day’s closing levels of 9.55/60, 9.75/80, 9.80/83, 9.92/97 and 9.98/00.

In addition, a limited amount of activity was witnessed on the 15.12.21 and 15.03.25 maturities at levels of 8.90% to 9.00% and 9.88%, respectively as well. Furthermore, continued demand in the secondary bill market saw bills with maturities of August, December and January 2020 changing hands at levels of 7.80%, 8.00% and 8.05% respectively.

The total secondary market Treasury bond/bill transacted volumes for 19 July was Rs. 5.5 billion. In money markets, despite the overnight net liquidity surplus increasing to Rs. 42.04 billion yesterday, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka continued to refrain from conducting any auctions in order to drain out liquidity. The overnight call money and repo rates averaged 7.82% and 7.89% respectively.

Rupee losses marginally

The USD/LKR rate on spot contracts depreciated further yesterday to close the day at Rs. 175.90/05 against its previous day’s closing levels of Rs. 175.80/85 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 19 July was $ 28.87 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 176.60/70; 3 months – 177.85/95 and 6 months – 179.90/10.