Bond yields increase for third consecutive day

Friday, 24 July 2020 01:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The upward trend in bond yields continued yesterday as well, driven by persistent selling interest on the liquid maturities of 15.12.22, 15.01.23, 15.09.24 and 01.02.26, which led to its yields increasing to intraday highs of 5.58%, 5.62%, 6.25% and 6.55% respectively against its previous day’s closing levels of 5.42/48, 5.45/55, 6.07/14 and 6.45/53. However, buying interest at these levels curtailed any further upward movement. In addition, maturities of 01.01.24 and 15.05.30 changed hands within the range of 6.00% to 6.10% and 7.05% to 7.25% as well. In secondary bills, a July 2021 maturity changed hands within the range of 4.95% to 5.05%. The total secondary market Treasury bond/bill transacted volumes for 22 July was Rs. 21.54 billion.

In money markets, the liquidity surplus of Rs. 132.52 saw the overnight call money and repo rates remaining mostly unchanged to average 4.54% and 4.55% respectively yesterday.

USD/LKR

In the Forex market, the USD/LKR rate on spot contracts were seen trading at levels of Rs. 185.74 to Rs. 185.79 yesterday before closing the day at Rs. 185.72/80. The total USD/LKR traded volume for 22 July was $ 40.25 million.

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