Secondary bond market yields close mostly unchanged

Friday, 29 March 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary market bond yields closed the day broadly steady yesterday with trades taking place within a thin range across the yield curve. The market favourite maturities of 15.03.24 and 01.05.29 were seen changing hands at levels of 11.00% to 11.01% and 11.40% to 11.42% respectively against its previous day’s closing levels of 10.98/02 and 11.38/42 while the maturities of 2021’s (i.e. 01.03.21, 01.05.21, 01.08.21, 15.10.21, 15.12.21), 2023’s (i.e. 15.03.23, 15.07.23 and 15.12.23), 01.08.26 and two 2027’s (i.e. 15.01.27 and 15.06.27) were seen trading at levels of 10.45% to 10.72%, 10.87% to 11.00%, 11.10% to 11.18% and 11.20% to 11.35% respectively as well. In secondary bill markets, December 2019 and February to March 2020 maturities were traded at 10.00% to 10.05%, 10.20% to 10.27% and 10.20% to 10.43% respectively.

In money markets, the overnight call money and repo rates averaged 8.50% and 8.58% respectively as the Open Market Operations (OMO) department of the Central Bank of Sri Lanka injected an amount of Rs. 10.00 billion and Rs. 4.00 billion on an overnight and seven day basis at weighted averages of 8.58% and 8.50% respectively yesterday. The overnight net liquidity shortfall in the system increased to Rs. 14.25 billion yesterday.

Rupee remains mostly unchanged

The Rupee on its spot contracts remained mostly unchanged yesterday to close the day at Rs. 176.10/25 against its previous day’s closing level of Rs. 176.20/35.

The total USD/LKR traded volume for 27 March was $ 149.05 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 177.00/30; 3 months - 178.70/00 and 6 months - 181.40/70.