Amidst moderate activity bond market yields edge up; rupee appreciates

Tuesday, 9 May 2023 01:22 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The activity in the secondary bond market remained moderate at the start of a new trading week yesterday while yields on its two-way quotes were seen increasing. The 15.09.27 maturity changed hands at levels of 28.00% to 28.10% while trades were reported on the 15.05.26 maturity at 29.00% to 29.02%. In secondary bills, May to July 2023 maturities traded at levels of 22.75% to 25.00%.

The total secondary market Treasury bond/bill transacted volume for 4 May 2023 was Rs. 20.29 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of a 7-day reverse repo auction for a volume of Rs. 30 billion at a weighted average rate of 16.50%. Further it injected an amount of Rs. 7 billion by way of 31-day reverse repo at a weighted average rate of 20.19%, valued today.

The weighted average rates on overnight call money and REPO stood at 16.50% each while the net liquidity deficit stood at Rs. 161.93 billion yesterday.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed at Rs. 317.90/318.50 yesterday against its previous day’s closing level of Rs. 319.00/319.40.

The total USD/LKR traded volume for 4 May was $ 77.60 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)

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