Bond yields increase marginally in thin trade

Friday, 5 October 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields were seen increasing marginally yesterday on the back of thin volumes. The yields on the liquid maturities of 15.10.21 and 15.07.23 increased to intraday highs of 10.75% and 10.97%, respectively, against its previous day’s closing levels of 10.62/67 and 10.88/90.

In addition, the maturities of 15.11.18, 15.09.19, two 2020’s (i.e. 01.05.20 and 15.12.20) and two 2021’s (i.e. 01.03.21 and 01.08.21) were seen changing hands at levels of 9.30% to 9.50%, 10.00%, 10.10% to 10.20% and 10.65% to 10.75%, respectively, as well.

The total secondary market Treasury bond/bill transacted volumes for 3 October was Rs. 9.33 billion.

In the money market, the overnight call money and repo rates averaged 8.45% and 8.36%, respectively, as the net liquidity shortfall in the system reduced to Rs. 5.83 billion yesterday.

The OMO Department of the Central Bank injected an amount of Rs. 10 billion on an overnight basis by way of a Reverse Repo auction at a weighted average rate of 8.20%. A further amount of Rs. 5.5 billion was infused by way of 14-day reverse repo auction at weighted average of 8.29%, valued today.

Rupee dips below Rs. 170

In the Forex market, the USD/LKR rate on its spot contract depreciated further yesterday, to hit a new low Rs. 170.10 for the first-time in its history and closed the day at Rs. 170.00/25 against its previous day’s closing levels of Rs. 169.65/85 on the back of continued buying interest by Banks.

The total USD/LKR traded volume for 3 October was $ 34 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 171.10/50; 3 months – 173.00/50 and 6 months – 175.80/30.