Secondary bond market activity moderates

By Wealth Trust Securities

The activity in the secondary bond market moderated yesterday with only the maturities of 15.07.23 and 01.09.28 changing hands at levels of 9.91% and 10.25%, respectively. 

The total secondary market Treasury bond/bill transacted volumes for 31 August was Rs. 8.19 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank drained out an amount of Rs. 9.17 billion on an overnight basis at a weighted average of 7.87% as the net surplus liquidity in the system stood at Rs. 21.33 billion yesterday. The overnight call money and repo rates averaged at 7.86% and 8.03%, respectively.

Rupee continues to lose

In the forex market, the continued importer demand saw USD/LKR rate on spot contracts losing further to close the day at Rs. 161.65/70 against its previous day’s closing levels of Rs. 161.45/50.

The total USD/LKR traded volume for 31 August was $ 66.40 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 162.40/60, 3 months – 164.00/30, and 6 months – 166.45/75.