Secondary market bond yields increase for third consecutive day

Friday, 19 May 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market remained active yesterday as continued selling interest saw yields increasing for a third consecutive day across the yield curve.

The maturities of 01.07.19, 01.05.20, 01.03.21, 15.12.21, 01.07.22, 01.09.23 and 01.08.24 saw its yields hitting intraday highs of 11.30%, 11.40%, 11.50% each, 11.65%, 11.70% and 11.73% respectively against its previous day’s closing levels of 11.10/20, 11.20/40, 11.35/45, 11.45/48, 11.50/60, 11.55/65 and 11.65/75. Meanwhile in secondary market bills, durations centring on the 182 day maturity continued to change hands within the range of 10.30% to 10.35%.

The total secondary market Treasury bond transacted volume for 17 May 2017 was Rs. 10.33 billion.

Meanwhile in money markets, the overnight call money and repo rates remained mostly unchanged to average 8.75% and 8.79% respectively as the net surplus liquidity in the system increased to Rs. 13.54 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 13 billion on an overnight basis at a weighted average of 7.28% by way of a repo auction.

Rupee remains mostly unchanged

Meanwhile in Forex markets yesterday, the USD/LKR rate on the active spot next contract remained mostly unchanged to close the day at Rs. 152.85/90. The total USD/LKR traded volume for 17 May 2017 was $ 67.01 million. Some of the forward USD/LKR rates that prevailed in the market were one month - 153.85/00; three months - 155.85/95 and six months - 158.80/90.