Bond yields increase further

Tuesday, 11 June 2019 00:17 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields were seen increasing further yesterday on the back of moderate volumes changing hands. The yields on the liquid maturities of 01.10.22, 15.03.23, 15.03.24, 01.08.26 and 15.10.27 increased to intraday highs of 10.15%, 10.30%, 10.46%, 10.75% and 10.80% respectively against its previous day’s closing levels of 9.95/00, 10.05/15, 10.22/30, 10.45/55 and 10.55/57. However, buying interest at these levels curtailed any further upward movement. In addition, the maturities of 01.05.20, two 2021’s (i.e. 01.05.21 and 01.08.21), 15.03.22, 15.07.23 and 01.05.29 were seen changing hands at levels of 8.77% to 8.82%, 9.55% to 9.67%, 10.00% to 10.15%, 10.30% and 10.75% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 7 June was Rs. 3.25 billion. In money markets, the OMO Department of the Central Bank drained out an amount of Rs. 15.00 billion on an overnight basis by way of a repo auction at a weighted average of 7.86% as the overnight net liquidity surplus stood at Rs. 34.89 billion yesterday. The overnight call money and repo rates averaged 7.97% and 8.07% respectively.

Rupee closes marginally higher

In the Forex market, the USD/LKR rate on the spot contracts were seen closing the day marginally higher at Rs. 176.45/50 in comparison to the previous day’s closing levels of Rs. 176.50/55, subsequent to trading within the range of Rs. 176.43 to Rs. 176.50.

The total USD/LKR traded volume for 7 June was $ 68.52 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 177.15/30; 3 months - 178.70/90 and 6 months - 180.85/15.