Secondary market bond yields decrease marginally

By Wealth Trust Securities

The secondary bond market yields decreased marginally yesterday on thin volumes. Buying interest of the two 2021’s (i.e. 01.03.21 and 01.08.21) and 01.08.25 saw the yields dipping to intraday lows of 9.93%, 10.00% and 10.35% respectively against its previous day’s closing levels of 9.90/00, 10.00/10 and 10.37/40. In addition, the one year Treasury bill was seen changing hands at 9.61%.

The total secondary market Treasury bond/bill transacted volumes for 2 March was Rs. 9.31 billion.

In money markets, the overnight call money and repo rates averaged at 8.14% and 7.53% respectively as the net surplus liquidity in the system stood at Rs. 30.12 billion. The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 18.6 billion by way of two repo auctions at weighted averages of 7.26% and 7.35% respectively for periods of 1 and 7 days.

Furthermore, it also drained out an amount of Rs. 1.00 billion by way of a term repo auction at a weighted average yield of 7.42% for a period of 10 days, with the value date being today.

Rupee appreciates marginally 

The USD/LKR rate on spot contracts was seen appreciating yesterday to close the day at Rs. 154.95/05 against its previous day’s closing level of Rs. 155.15/25 backed by some forward selling interest.

The total USD/LKR traded volume for 2 March was $ 61.15 million.

Some of forward USD/LKR rates that prevailed in the market were 1 Month - 155.90/00; 3 Months - 157.50/60 and 6 Months - 159.95/05.