Foreign selling keeps secondary bond markets steady

Friday, 4 November 2016 00:01 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields was seen closing the day broadly steady yesterday despite the weekly weighted averages dipping on Wednesday due to continued foreign selling on the short end of the yield curve.

The market favorite maturities of 15.09.19 and 01.03.21 were seen dipping to intraday lows of 11.48% and 11.70% respectively against its previous day’s closing levels of 11.47/53 and 11.67/74. However, selling interest at these levels saw yields increasing once again during the latter part of the day to close at 11.50/55 and 11.72/75 respectively. Furthermore, limited volumes of the 01.04.18 maturity were traded at levels of 10.95%.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.44% and 8.77% respectively as the net deficit in the system stood at Rs. 35.83 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 35.00 billion on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.50%.

Rupee appreciates marginally

The USD/LKR rate on one week forward contracts appreciated marginally yesterday to close the day at Rs. 148.70/85 against its previous day’s closing levels of Rs. 148.80/90.

The total USD/LKR traded volume for the 2 November 2016 was $ 41.46 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 149.40/55; three months - 151.15/25 and six months - 153.80/00.

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