Bond yields increase marginally on moderate volumes

Friday, 29 May 2020 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields increased marginally yesterday on the back of moderate volumes as the market favorite maturities of 15.01.23, 2024’s (i.e. 15.03.24, 15.06.24 & 15.09.24), 01.05.25 and 15.10.27 hit intraday highs of 7.80%, 8.35%, 8.40% each, 8.50% and 8.85% respectively against its previous day’s closing levels of 7.72/78, 8.30/35, 8.35/38 each, 8.47/55 and 8.78/83. In addition, the maturities of 01.07.22 and 15.03.25 changed hands at levels of 7.40% and 8.58% to 8.60% respectively as well, while activity tapered off towards the latter part of the day.

In secondary bills market, the July 2020 and may 2021 maturities changed hands at levels 6.62% and 6.90% respectively.

The total secondary market Treasury bond/bill transacted volume for 27 May was Rs. 21.44 billion.

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka refrained from conducting any auctions for a third consecutive day as the overnight net liquidity surplus in the system stood at Rs. 100.80 billion. The weighted average rates on overnight call money and repo was recorded at 5.88% and 5.93% respectively.

Rupee loses marginally

In the Forex market, the USD/LKR rate on the spot rate depreciated marginally yesterday to close the day at Rs. 186.30/35 against its previous day’s closing levels of Rs. 186.15/35 on the back buying interest from banks.

The total USD/LKR traded volume for 27 May was $ 83.25 million.

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