Secondary market bond yields increase

Tuesday, 22 January 2019 00:14 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields were seen increasing yesterday for the first time in six trading sessions on the back of profit taking. The market favorite maturity of 15.12.23 edged up to hit an intraday high of 11.27% against its previous day’s closing level of 11.16.19 while the maturities of 15.03.25 and 01.06.26 increased to highs of 11.415% and 11.47% respectively against its previous day’s closing levels of 11.30/37 and 11.38/42. In addition, the maturities of 15.12.21, 15.07.23 and 01.08.26 changed hands at levels of 10.78% to 10.84%, 11.25% to 11.27% and 11.38% to 11.44% as well.

The total secondary market Treasury Bond/Bills transacted volume for 18 January was Rs. 10.28 billion.

In the money market, the OMO Department of Central Bank infused liquidity by way of an overnight reverse repo auction for a successful amount of Rs. 40 billion at a weighted average yield of 9% as the net liquidity shortfall stood at Rs. 134.15 billion yesterday. The overnight call money and repo rates averaged 9% and 8.99%, respectively.

Rupee loses marginally

The USD/LKR rate on spot contracts was seen depreciating marginally yesterday to close the day at Rs. 181.75/85 against its previous day’s closing of Rs. 181.60/65 on the back of buying interest by banks.

The total USD/LKR traded volume for 18 January was $81.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 182.75/90; three months – 184.55/75 and six months – 187.50/70.