Sentiment in secondary bond markets remain negative

Friday, 18 November 2016 00:03 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The upward trend in secondary market bond yields continued yesterday as well, on the back of continued selling interest mainly on the mid-term maturities of the yield curve. The liquid maturity of 01.08.26 continued to change hands within the range of 12.80% to 12.88% while yields on the 01.09.23 and 01.08.24 maturities were seen increasing to highs of 12.86% and 12.88% respectively from an opening lows of 11.55% and 12.80%.

Meanwhile in money markets, overnight call money and repo rates remained mostly unchanged to average 8.44% and 8.66% respectively as the Open Market Operations (OMO) department of Central Bank injected an amount of Rs.49.86 b on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.49%. The net deficit in the market stood at Rs.56.11 billion.

Rupee closes mostly unchanged

The USD/LKR rate on spot next contracts closed the day mostly unchanged at Rs.148.60/70. The total USD/LKR traded volume for 16 November 2016 was $ 41.50 m.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 149.30/45; 3 months - 151.20/30 and 6 months - 153.75/85.