Bond market activity moderates as yields edge up once gain

• Rupee continues to slide

By Wealth Trust Securities

The activity in the secondary bond market moderated considerably yesterday as yields edged up marginally for the first time during the week. 

In limited trades, the 15.09.24 maturity saw its yield edge up to an intraday high of 9.68% against its previous day’s closing level of 9.58/62 on renewed selling interest while the maturities of 01.03.21, 01.05.21 and 15.03.24 changed hands at levels of 8.55%, 8.50% to 8.67% and 9.65% respectively as well.

Nevertheless, continued buying interest in the secondary bill market resulted in the maturities of April 2020, January 2021, February 2021 and March 2021 changing hands at levels of 7.02%, 8.17% to 8.27%, 8.25% and 8.25% to 8.30% respectively.

The total secondary market Treasury bond/bill transacted volume for 18 March was Rs.38.53 billion.  In money markets, the weighted average yields on overnight call money and repo rates stood at 6.71% and 6.82% respectively as the overnight net liquidity surplus in the system was recorded at Rs.81.21 billion yesterday. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs.30.94 billion at a weighted average of 6.76% by way of an overnight repo auction.

USD/LKR rate dips further

In the Forex market, the USD/LKR rate on spot contracts was traded within the range of Rs.186.75 to Rs.187.00 yesterday against its previous days of Rs.185.40 to Rs.185.50.

The total USD/LKR traded volume for 18 March was $ 100.50 million. 

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