Bond market activity moderates as yields fluctuate

Friday, 4 September 2020 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market opened the day on an active note yesterday as continued buying interest pushed yields of the 2022s (i.e. 15.11.22 and 15.12.22), 2024s (i.e. 15.06.24 and 15.09.24), 01.02.26, 15.08.27 and 15.05.30 maturities to intraday lows of 5.45% each, 6.00% each, 6.44%, 6.77% and 7.25% respectively against its previous day’s closing levels of 5.45/48, 5.45/50, 6.00/07, 6.02/08, 6.48/52, 6.82/85 and 7.20/30.

However, profit taking saw yields on the 2022s (i.e. 15.11.22 and 15.12.22), 15.06.24, 01.02.26 and 15.08.27 pick up once again to levels of 5.53%, 5.50%, 6.02%, 6.50% and 6.85% respectively with activity moderating once again.

In the secondary bill market, February, March and September 2021 maturities changed hands at levels of 4.65%, 4.64% to 4.65% and 4.85% respectively. The total secondary market treasury bond/bill transacted volumes for 2 September was Rs. 35.15 billion.

In the money market yesterday, overnight surplus liquidity along with weighted average rates on overnight call money and Repos were recorded at Rs. 189.38 billion, 4.53% and 4.54% respectively.

LKR trades within a steady range

In the Forex market, USD/LKR rate on spot contracts was seen trading within a range of Rs. 185.10 to Rs. 185.38 yesterday before closing the day at Rs. 185.20/30 against its previous day’s closing level of Rs. 185.25/35. The total USD/LKR traded volume for 2 September was $103.35 million.

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