Secondary bond market yields remain broadly steady

Friday, 29 September 2017 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields remained broadly steady yesterday with the liquid maturities of 01.05.21 and 01.08.26 changing hands within the range of 9.98% to 10.00% and 10.26% to 10.29% in thin trades.

Meanwhile, the weighted average yield of the five-year maturity of 01.10.2022 at yesterday’s primary Treasury bond auction was 10.09% while the average yield of the 9.08 year maturity of 15.06.2027 was at 10.31%. The total offered amount of Rs. 15 billion was successfully subscribed at the auction.

The total secondary market Treasury bond/bill transacted volumes for 27 September 2017 was Rs. 9.02 billion.

In money markets, the overnight call money and repo rates averaged 8.10% and 7.96% respectively as the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 12.00 billion on an overnight basis by way a repo auction at a weighted average of 7.25%. The net surplus liquidity in the system stood at Rs. 14.17 billion.

Rupee losses further

 In the Forex market, the USD/LKR spot rate was seen losing further value yesterday, to close the day at Rs. 153.15/20 against its previous day’s closing level of Rs. 153.02/12 on the back of continued importer demand.

The total USD/LKR traded volume for 27 September 2017 was $ 46.90 million. Some of forward USD/LKR rates that prevailed in the market were one month - 153.90/00; three months - 155.55/75 and six months - 157.75/85.