Secondary bond market yields remain mostly unchanged

Friday, 29 June 2018 00:10 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary bond market yields remained broadly unchanged yesterday, with moderate volumes changing hands within a narrow band.

Maturities consisting of the 01.05.20, 15.03.23, 01.08.25 and two 2026s (i.e. 01.06.26 and 01.08.26) and the two 2028s (i.e. 15.03.28 ad 01.09.28) traded at levels of 9.75% to 9.80%, 10.44% to 10.45%, 10.62% to 10.66%, 10.63% to 10.64%, 10.62% to 10.72%, 10.67% and 10.72% respectively.

The total volume of bonds transacted in the secondary market 26 June 2018 was Rs. 6.31 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 15 billion at a weighted average yield of 8.50%, by way of an overnight reverse repo auction as the net liquidity in the system increased to Rs. 13.93 billion. The overnight call money and repo rates averaged 8.49% and 8.43% respectively.

Rupee appreciates further

In the Forex market, the USD/LKR spot rate was seen appreciating further yesterday to close the day at Rs. 158.25/35 against its previous day’s closing levels of Rs. 158.35/50 on the back of continued selling interest by banks. The total USD/LKR traded volume for 26 June 2018 was $ 91.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 158.90/10; three months - 160.50/80 and six months - 162.90/15.