Secondary bond market yields decrease marginally in moderate trading

By Wealth Trust Securities

The yields in the secondary bond market dipped marginally yesterday against its previous day’s closing levels on the back of moderate volumes. 

The liquid maturities of 01.08.21, 15.12.21, 15.05.23, 01.08.24 and 01.08.26 were seen hitting intraday lows of 10.46%, 10.47%, 10.77%, 10.80% and 10.95% respectively against its previous day’s closing of 10.55/65, 10.45/55, 10.75/83, 10.80/95 and 10.95/05. In addition, the 15.06.2027 maturity was seen changing hands within the range 10.95% to 11.00% as well.

The total secondary market Treasury bond/bill transacted volume for 23 August was Rs. 3.63 billion.

Meanwhile, in money markets yesterday, the Open Market Operations (OMO) Department of the Central Bank was seen mopping up excess liquidity by way of outright sales of Treasury bills. The auctions drained out an amount of Rs. 1.5 billion for a period of 21 days at a weighted average of 8.51% while all bids received for the 28-day bill were rejected. 

In addition, it drained out an amount of Rs. 10.49 billion on an overnight basis at a weighted average of 7.27% as the net surplus liquidity in the system stood at Rs. 25.59 billion. The overnight call money and repo rates averaged 8.36% and 8.40% respectively.

Rupee dips marginally 

The USD/LKR rate on spot contracts were seen losing ground for the first time in four days to close at Rs. 152.95/05 against its previous day’s closing of Rs. 152.85/90 on the back of importer demand.

The total USD/LKR traded volume for 23 August was $ 70.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.90/00; three months - 155.70/85 and six months - 158.40/55.