Friday Dec 13, 2024
Friday Dec 13, 2024
Monday, 23 July 2018 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Secondary bond market yields continued its positive momentum during the week ending 20 July to reflect a parallel downward shift on the overall yield curve for a second consecutive week, driven by buying interest by local market participants.
Accordingly, the liquid maturities of 01.07.19, three 2021’s (i.e. 01.03.21, 01.05.21 and 01.08.21), 01.10.22, 15.03.23, 01.08.24, 15.10.25, 01.08.26, 15.06.27 and 10.09.28 were seen dipping to weekly lows of 9.20%, 9.73%, 9.83% each, 10.05%, 10.14%, 10.22%, 10.30%, 10.40% and 10.50% each respectively against its previous weeks closing levels of 9.40/50, 9.93/96, 10.00/10, 10.00/15, 10.23/33, 10.35/45, 10.42/50, 10.50/60, 10.53/63 and 10.55/63.
The downward trend was further supported by the decrease in weighted averages at the weekly Treasury bill auction, where the 91, 182 and 364 day maturities recorded 8.25%, 8.75% and 9.31% respectively reflecting dips of 12, 10 and 12 basis points.
The downward trend in yields was despite foreign selling in rupee bonds gathering pace once again to record an outflow of Rs. 1.98 billion for the week ending 18 July 2018 against a meager outflow of Rs. 9 million the previous week.
The daily secondary market Treasury bond/bill transacted volume for the first four days of the week averaged Rs. 7.45 billion.
In money markets, the overnight call money and repo rate averaged at 8.49% and 8.33% respectively for the week as the average surplus liquidity in the market stood at Rs. 18.61 billion during the week. The OMO Department of Central Bank continued to conduct overnight repo auctions throughout the week in order to drain out liquidity at weighted averages ranging from 7.82% and 8.13%.
Rupee continues to dip for a third consecutive week
The USD/LKR rate on spot contracts depreciated further to close the week lower at Rs. 159.90/00 in comparison to its previous week’s closing levels of Rs. 159.60/70 on the back of continued importer dollar demand outweighing export conversions.
The daily USD/LKR average traded volume for the first four days of the week stood at $ 52.59 million.
Some of the forward dollar rates that prevailed in the market were one month - 160.70/90; three months - 162.25/55 and six months - 164.60/90.
