Bond yields increase marginally

Friday, 19 July 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary market bond yields were seen increasing marginally yesterday on the back of selling interest due to profit taking.

The maturities of 01.08.21, 15.07.23, 15.06.24 and 15.01.27 were the more actively traded durations as its yields were seen hitting intra-day highs of 8.90%, 9.60%, 9.87% and 10.10% respectively against its previous day’s closing levels of 8.75/85, 9.50/55, 9.78/79 and 10.00/05.

Furthermore, limited amount of activity was witnessed of the three 2021s (i.e. 01.03.21, 15.10.21 and 15.12.21), 15.03.24, 01.08.25, 01.08.26 and two 2028s (i.e. 15.03.28 & 01.09.28) at levels of 8.75% to 8.90%, 9.78%, 10.00%, 9.95%, 10.08% to 10.10% respectively as well. Nevertheless, continued demand in the secondary bill market saw bills with maturities of January and July 2020 changing hands at levels of 8.05% to 8.10% and 8.37% respectively.

The total secondary market Treasury bond/bill transacted volumes for the 17 July was Rs. 7.05 billion.

In money markets, the overnight call money and repo rates averaged 7.83% and 7.89% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka refrained from conducting any auctions yesterday. The overnight net liquidity surplus increased to Rs. 34.76 billion yesterday.

Rupee loses marginally

The USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs. 175.74/80 against its previous day’s closing levels of Rs. 175.65/70 on the back of importer demand.

The total USD/LKR traded volume for the 17 July 2019 was $ 97.19 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 176.35/50; three months - 177.70/90 and six months - 179.70/00