Activity in secondary bond market moderates

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday with sentiment turning bearish. Limited trades were seen consisting of the 01.07.19 and 15.07.23 maturities at levels of 10.80% and 11.50%, respectively.

The total secondary market Treasury bond/bill transacted volumes for 7 November was Rs. 10.64 billion.

In the money market, overnight call money rate remained steady to average 8.47% as the OMO Department of the Central Bank was seen infusing liquidity by way of an overnight and a seven-day term repo auction for successful amounts of Rs. 24.15 billion and Rs. 20 billion, respectively, at weighted average yields of 8.46% and 8.50%. The net liquidity shortage in the system stood at a high of Rs.88.02 billion yesterday.

Rupee loses further  

Continued buying interest from banks saw the rupee rate on spot contracts losing further to close at Rs. 175.10/20 against its previous day’s closing level of Rs. 174.85. The total USD/LKR traded volume for 7 November was $ 71.65 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 176.00/30, 3 months – 178.00/30, and 6 months – 181.00/40.