Continued demand drives yields down further

Thursday, 18 April 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market remained active yesterday as continued buying interest across the yield curve consisting of the maturities 01.08.21, 15.03.22, 15.03.24, 15.01.27 and 01.05.29 saw its yields dip to intraday lows of 10.18%, 10.43%, 10.73%, 10.98% and 11.15% respectively against its previous day’s closing levels of 10.20/28, 10.45/50, 10.78/85, 11.02/08 and 11.17/23.

In addition, the maturities of 01.05.20, 15.12.21, 15.07.23 and 01.08.26 changed hands at levels of 9.92% to 9.95%, 10.22%, 10.66% and 10.92% to 10.94% respectively as well. In the secondary bill market, August 2018 and February maturities along with latest 364-day maturity changed hands at lows of 9.02%, 9.75% and 9.73% respectively.

The total secondary market Treasury bond/bill transacted volumes for 16 April was Rs.5 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average at 8.55% and 8.58% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka injected liquidity by way of an overnight and seven day repo auction for amounts of Rs.2.59 billion and Rs.9.80 billion respectively at weighted averages of 8.52% and 8.55%. The net liquidity shortfall in the system decreased to Rs.6.49 billion yesterday.

Rupee appreciates marginally

In the Forex market, the rupee on its spot contracts were seen appreciating marginally yesterday to close the day at Rs.174.45/60 against its previous day’s closing level of Rs.174.60/70, subsequent to trading within the range of Rs.174.55 to Rs.174.67.

The total USD/LKR traded volume for 16 April was $ 78.85 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 175.35/55; 3 months – 177.30/60 and 6 months – 180.20/50.