Bonds trade within a narrow range

Friday, 3 July 2020 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The bond market traded within a narrow range yesterday as the liquid maturities of 15.12.22, 15.10.23, 15.09.24, 01.05.25, 01.02.26 and 15.10.27 changed hands within levels of 5.80% to 5.84%, 5.90%, 6.42% to 6.47%, 6.56% to 6.57%, 6.72% to 6.77% and 6.95% to 6.96% respectively. 

In addition, maturities of 15.03.24, 2026s (i.e. 01.06.26 and 01.08.26) and 01.05.28 traded at levels of 6.36%, 6.75% to 6.76% and 6.96% to 7.05% respectively as well.

In the secondary bill market, 5 February, 12 March and 2 July 2021 maturities changed hands at a level of 5.40% to 5.45%.

The total secondary market Treasury bond/bill transacted volume for 1 July was Rs. 28.01 billion.

In money markets, the weighted average rates on overnight call money and repo remained mostly unchanged at 5.52% and 5.54% respectively as the DOD (Domestic Operations Department) of Central Bank continued to refrain from conducting any auction. The overnight net liquidity surplus in the system stood at Rs. 173.32 billion yesterday. Rupee appreciates further  

In Forex markets, the USD/LKR on spot contracts were seen appreciating further yesterday to close the day at Rs. 186.05/15 against its previous day’s closing days of Rs. 186.15/25 on the back of continued selling interest by Banks.

The total USD/LKR traded volume for 1 July was $ 130.86 million.

(References: Central Bank of Sri Lanka, Bloomberg e-bond trading platform, money broking companies)