Secondary bond market activity increases as yields decrease

Tuesday, 12 September 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market increased yesterday as yields were seen decreasing across the yield curve on the back of renewed foreign buying interest. The yields on the liquid three 2021’s maturities (i.e. 01.03.21, 01.08.21 and 15.12.21) were seen dipping to intraday lows of 10.15%, 10.17% and 10.16% respectively from its opening highs of 10.25%, 10.33%, 10.30% while the 15.05.23, 01.08.24, 01.08.26, 01.09.28 and 15.05.30 maturities were seen changing hands within the range of 10.37% to 10.42%, 10.42% to 10.52%, 10.52% to 10.70%, 10.75% to 10.88% and 10.84% to 10.92% respectively.

The total secondary market Treasury bond/bill transacted volumes for 8 September 2017 was Rs. 6.63 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged at 8.04% and 8.12% respectively as the net surplus liquidity in the system stood at Rs.22.33 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs.6.78 Billion on an overnight basis at a weighted average of 7.27%.

Downward trend in rupee continue

In the Forex market, the USD/LKR rate on the spot rate dipped further to close the day at Rs. 152.80/85 against its previous day’s closing levels of Rs. 152.75/85 on the back continued importer dollar demand.

The total USD/LKR traded volume for 8 September 2017 was $ 35.50 million.