Secondary bond market yields remain broadly steady

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.