Secondary market bond yields decrease marginally

Tuesday, 25 February 2020 01:31 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary market bond yields decreased marginally at the start of a fresh trading week as considerable volumes were seen changing hands between foreign and local participants.

Buying interest on the liquid maturities of 2023s (i.e. 15.03.23 and 15.05.23) and 2024s (i.e. 15.03.24, 15.06.24 and 15.09.24) saw their yields dip to intraday lows of 9.45%, 9.48% and 9.70% each against their previous day’s closing levels of 9.51/55, 9.50/60, 9.70/80, 9.75/83 and 9.78/83. In addition, the 01.01.24, 01.08.24 and 15.06.27 were seen changing hands at levels of 9.70% to 9.75%, 9.80% to 9.90% and 10.00% respectively as well.

The total secondary market Treasury bond/bill transacted volume for 20 February 2020 was Rs. 7.85 billion.

Overnight money market liquidity was seen increasing yesterday to Rs. 26.94 billion from Rs. 14.98 billion as the overnight call money and repo recorded weighted averages of 7.00% and 7.02% respectively.

Rupee losses

In the Forex market, renewed demand by banks saw the USD/LKR rate on spot contracts depreciating marginally to close the day at Rs. 181.70/80 against its previous day’s closing of Rs. 181.55/60.

The total USD/LKR traded volume for 20 February was $ 73.31 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 182.25/40; three months - 183.25/45 and six months - 184.80/10.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform and Money broking companies)