Secondary bond market activity moderates

Tuesday, 2 July 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday with yields of the 15.10.21 and 15.06.24 maturities decreasing to lows of 9.25% and 9.83%, respectively, against its previous day’s closing levels of 9.25/30 and 9.88/90. Furthermore, maturities consisting of the 01.08.21, 15.03.23, 15.12.23, and 15.03.24 changed hands at levels of 9.25%, 9.70%, 9.80%, and 9.85%.

The total secondary market Treasury bond/bill transacted volumes for 28 June was Rs. 14.83 billion.

In money markets, the overnight call money and repo rates averaged 7.85% and 7.87%, respectively, as the OMO Department of the Central Bank was seen draining out an amount of Rs. 16.2 billion by way of an overnight repo auction at a weighted average yield of 7.73%.

It also mopped up an amount of Rs. 16.3 billion by way of a seven-day repo auction at a weighted average yield of 7.80% as the net surplus liquidity increased to Rs. 38.23 billion.

Rupee appreciates

In the Forex market, the USD/LKR rate on spot contracts appreciated to close the day at Rs. 176.25/35 against its previous day’s closing levels of Rs. 176.40/45.

The total USD/LKR traded volume for 28 June was $ 63.87 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 176.95/15; 3 months – 178.25/55, and 6 months – 180.25/65.