Sunday Dec 15, 2024
Sunday Dec 15, 2024
Wednesday, 20 September 2017 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Secondary bond market yields were seen decreasing once again yesterday on the back of local buying interest mainly on the liquid maturities of 01.08.26 and 15.05.30 from its opening highs of 10.15% and 10.65% respectively to lows of 10.10% and 10.50%.
In addition, activity was witnessed on the 01.04.18, 15.01.19, three 2021’s (i.e. 01.03.21, 01.08.21 and 15.12.21), 01.09.23 and 01.08.25 maturities at levels of 9.05% to 9.10%, 9.35%, 9.80% to 9.91%, 9.95% and 10.15% to 10.30% respectively while in secondary market bills, April, August and September 2018 bills were traded at levels of 9.10%, 9.17% to 9.28% and 9.20% respectively as well.
At today’s auction, a total amount of Rs. 23 billion will be on offer which will consist of Rs. 13 billion on the 182 day maturity and Rs. 10 billion on the 364 day maturity. At last week’s auction, the weighted average on the 182 day and 364 day bills declined by 18 and 38 basis points respectively to 9.05% and 9.20%.
The total secondary market Treasury bond/bill transacted volumes for 18 September 2017 was Rs. 5.90 billion.
In money markets, all efforts by the OMO department to drain out liquidity on a permanent basis by way of outright sales of Treasury bills and term repo auctions were unsuccessful as all bids received were rejected yesterday. However, an amount of Rs. 18.16 billion was drained out on an overnight basis at a weighted average of 7.26%. The overnight call money and repo rates averaged 8.05% and 7.95% respectively. Net surplus liquidity in the system stood at Rs. 35.57 billion yesterday.
In the Forex market, the USD/LKR rate on the spot rate depreciated further to close the day at Rs. 153.10/20 against its previous day’s closing levels of Rs. 153.05/15 on the back of continued importer dollar demand.
The total USD/LKR traded volume for 18 September was $ 59.39 million.
Some of the forward USD/LKR rates that prevailed in the market were one month - 153.95/10; three months - 155.40/50 and six months - 157.50/60.
