Secondary bond market activity moderates

By Wealth trust Securities

Activity in the secondary bond market moderated once again yesterday with limited trades of the two 2019 (i.e. 01.07.19 and 15.09.19), 15.12.20, two 2021s (i.e. 01.03.21 and 01.05.21) and 01.08.24 maturities taking place at levels of 8.95% to 8.98%, 9.35% to 9.38%, 9.51% to 9.53% and 10.10% respectively.  

Furthermore, the 15.01.19 maturity was traded at 8.48%. The total secondary market Treasury bond/bill transacted volumes for 5 September 2018 was Rs. 5.80 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds. 

 In the money market, the overnight call money and repo rates averaged 7.89% and 8.00% respectively as the net surplus liquidity increased further to Rs. 22.76 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 17.61 billion on an overnight basis at a weighted average of 7.82%.

Rupee fluctuates 

and closes higher 

 The Sri Lankan Rupee (LKR) against the US Dollar (USD) was seen gaining to an intraday high of Rs. 161.30 yesterday subsequent to opening at a low of Rs. 162.50 on the back of selling interest by banks. The greenback was seen closing the day at Rs. 161.40/60 against its previous day’s closing of Rs. 162.15/30.

The total USD/LKR traded volume for 5 September 2018 was $ 67.25 million.

Given below are some forward USD/LKR rates that prevailed in the market. 

 1 Month              -               162.15/45

3 Months             -              163.90/30

6 Months             -              166.20/60