Upward trend in Secondary bond market yields continue

Friday, 7 October 2016 00:49 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Growing and continued selling pressure by market participants led to a further increase in the secondary market bond yields, yesterday. The liquid maturities of 01.10.22, 01.08.24, 01.08.26 and 15.05.30 saw its yields increase to intraday highs of 11.60%, 11.65%, 11.71% and 12.00% respectively against its previous day’s closing levels of 11.10/20, 11.30/50, 11.50/60, 11.60/70 and 11.80/00. Furthermore, the 01.11.19 and 01.05.20 maturities also traded at highs of 11.15% and 11.25% respectively.

In money markets, the overnight call money and repo rates averaged at 8.42% and 8.97% respectively as the Open Market Operations (OMO) Department of Central Bank of Sri Lanka was seen injecting an amount of Rs. 54.00 billion on an overnight basis at a weighted average of 8.49% by way of a reverse repo auction. The net liquidity shortfall stood at Rs. 58.84 billion.

Rupee dips further

Meanwhile in Forex markets, the spot rate was seen dipping further to close the day at Rs.146.80/90 against its previous day’s closing level of Rs. 146.75/80. The total USD/LKR traded volume for the 04th of October 2016 was $ 51.30 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 147.75/95; 3 Months - 149.30/40 and 6 Months - 151.75/85.