Secondary market bond yields continue to nosedive

Thursday, 14 January 2016 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

In secondary bond markets, yields continued to nose dive for a third consecutive day mainly on the longer end of the yield curve. Yields on the liquid maturities of 1 August 2025, 1 January 2029, 15 May 2030, 15 March 2035 and 1 January 2041 were seen dipping to intraday lows of 10.45%, 10.90% each, 11.00% and 11.05% respectively against its days opening highs of 10.70%, 11.00% each, 11.05% and 11.30% as volumes changing hands increased.

In addition, the maturities of 1 November 2019 and 1 September 2023 were seen changing hands within the range of 9.45% to 9.50% and 10.05% to 10.15% respectively as well. In secondary bill markets, April 2016 and May 2016 bills were quoted at levels of 6.70/80 and 6.80/00 respectively.

In money markets, the overnight call money and repo rates remained steady to average 6.55% and 6.42% respectively as the surplus liquidity in the system stood at Rs.86.89 billion yesterday.

Rupee dips marginally

The USD/LKR rate on spot contracts was seen dipping yesterday reversing an appreciating trend to close the day at Rs.143.80/90 against its previous day’s closing of Rs.143.75/80 on the back of renewed importer demand. The total USD/LKR traded volume for 12 January was $ 68.90 million.

Some of the forward USD/LKR rates that prevailed in the market were: one month – 144.40/50; three months – 145.55/65; and six months – 147.20/30.