Bond yields mostly unchanged in moderate trade

Friday, 26 October 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary bond market yields were seen closing the day mostly unchanged subsequent to dipping in morning hours of trading as activity moderated yesterday.

The liquid maturities of 01.03.21, 15.10.21, 15.03.23 and 15.07.23 were seen changing hands at levels of 10.80% to 10.85%, 10.85% to 10.90%, 11.30% to 11.35% and 11.33% to 11.37% respectively against its previous day’s closing levels of 10.80/85, 10.85/95, 11.35/40 and 11.36/40. In addition, the maturities of 15.09.19 and 15.12.21 were traded at levels of 10.20% and 10.90% respectively as well.

The total secondary market Treasury bond/bill transacted volume for 23 October 2018 was Rs. 7.43 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

In the money market, the net liquidity shortfall stood at Rs. 34.87 billion yesterday, with call money and repo averaging 8.44% and 8.49% respectively. The OMO Department of the Central Bank was seen infusing liquidity by way of an overnight and seven-day term repo auction for successful amounts of Rs. 12 billion and Rs. 14.6 billion respectively at weighted averages of 8.42% and 8.45%.

A further total amount of Rs. 5.44 billion was injected by way of outright purchases of Treasury bills at weighted averages ranging from 9.39% to 9.91% for a duration of 77 days to 273 days, valued today.

Rupee loses marginally

In the Forex market, the USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs. 172.75/90 against its previous day’s closing levels of Rs. 172.50/70 on the back of continued buying interest from banks.

The total USD/LKR traded volume for 23 October 2018 was $ 106.75 million.

Given below are some forward USD/LKR rates that prevailed in the market.

1 month - 174.00/30

3 months - 175.70/10

6 months - 178.95/25