Bond yields steady once again in moderate trading

Friday, 25 May 2018 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary market bond yields remained broadly steady once again with moderate volumes changing hands yesterday. 

On the short end of the yield curve, the 15.12.21 and 15.03.23 maturities were seen changing hands at levels of 10.15% to 10.16% and 10.40% to 10.50% respectively while on the belly end, the 01.08.24, 01.08.26, 15.06.27 and 01.09.28 changed hands at levels of 10.51% to 10.53%, 10.60% to 10.62%, 10.65% to 10.66% and 10.67% to 10.69% respectively. However, on the long end of the curve, the yield on the 15.05.2030 maturity was seen increasing to hit an intraday high of 11.00% and trade within the range of 10.90% to 11.00%.

The total secondary market Treasury bond/bill transacted volume for 23 May 2018 was Rs. 8.5 billion. The money market liquidity was seen dipping to Rs. 0.42 billion yesterday as the Open Market Operations (OMO) Department of Central Bank of Sri Lanka drained out an amount for Rs. 4.6 billion at a weighted average rate of 7.34% by way of overnight repo auction. Call money and Repo averaged 7.94% each respectively.

Rupee depreciates marginally

In the Forex market, the USD/LKR rate on the spot contract depreciated marginally to close the day at Rs. 158.00/20 against its previous day’s closing levels of Rs. 157.90/00 on the back of importer dollar demand.

The total USD/LKR traded volume for 23 May was $ 105.43 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 158.80/00; three months - 160.20/40 and six months - 162.75/00.