Liquid bond yields increase intraday; close lower

Friday, 8 November 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The opening trading session in the bond market saw yields increasing further yesterday, with the market favourite maturities of 15.12.23, two 2024s (i.e. 15.06.24 and 15.09.24), 15.10.27 and 15.09.34 hitting highs of 9.80%, 10.07%, 10.08%, 10.30% and 10.70% respectively against its previous day’s closing levels of 9.75/80, 10.00/08, 10.04/08, 10.28/33 and 10.65/70.

However, the upward movement was curtailed towards the latter part of the day as yields dipped once again on the two 2024s (i.e. 15.06.24 and 15.09.24) and 15.10.27 to lows of 10.05% each and 10.28% respectively on the back of buying interest. In addition, the maturities of 01.10.22 and 15.06.27 changed hands at levels of 9.12% to 9.15% and 10.26% respectively.

The total secondary market Treasury bond/bill transacted volume for 6 November was Rs.13.43 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged 7.50% and 7.55% respectively as the overnight net liquidity surplus in the system stood at Rs. 13.79 billion yesterday.

The Open Market Operations (OMO) Department of Central Bank injected an amount of Rs. 15 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.55%. Furthermore it injected an amount Rs. 17.30 billion for 10 days at a weighted average rate of 7.65%, valued today.

Rupee loses further

In the Forex market, the rupee on spot contracts were seen depreciating further yesterday to close the day at Rs. 180.80/90 against its previous day’s closing level of Rs.180.70/80 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 6 November was $ 131.09 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.30/45; three months – 182.45/65; six months – 184.25/55.