OMO buys over Rs. 11 b of bonds

Friday, 18 October 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The Open Market Operations (OMO) department of Central Bank once again injected in total an amount of Rs.11.93 billion, by way of outright purchases of Treasury bond maturities of 01.03.21, 15.10.21 and 15.12.21 at weighted average rates of 8.55%, 8.65% and 8.68% respectively.

The secondary bond market yields were seen decreasing for a fifth consecutive day yesterday. The market favourite 2024 maturities (i.e.15.06.24 and 15.09.24) saw its yields dip to intraday lows of 9.94% and 9.95% respectively against its previous day’s closing levels of 9.92/97 and 9.95/97 while maturities of 2021s (i.e. 01.08.21 and 15.12.21), 01.07.22 and 15.07.23 decreased to lows of 8.60%, 8.64%, 9.10% and 9.55% respectively. In addition, the maturities of 15.06.27 and 01.05.29 traded at levels of 10.28% to 10.32% and 10.42% respectively as well.

In the secondary bill market, March, June and July 2020 maturities changed hands at levels of 7.70%, 7.81% and 8.11% respectively.

The total secondary market Treasury bond/bill transacted volume for 16 October was Rs.16.85 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged 7.56% and 7.58% respectively as the Open Market Operations (OMO) Department of Central Bank injected an amount of Rs.17.2 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.61%. The overnight net liquidity surplus in the system stood at Rs.4.58 billion yesterday.

Rupee loses marginally

The USD/LKR rate on spot contracts were seen trading within the range of Rs.181.95 to Rs.182.22 yesterday before closing the day at Rs.182.00/20 against its previous day’s closing levels of Rs.181.85/95 on the back of buying interest by banks.

The total USD/LKR traded volume for 17 October was $ 121 million

Given are some forward USD/LKR rates that prevailed in the market: one month – 182.55/75; three months – 183.80/10; six months – 185.50/90.