Bond market rates remain mostly unchanged

By Wealth Trust Securities

The secondary bond market rates remained mostly unchanged with the maturities of 15.10.21, 01.10.22 and 15.06.24 trading at levels of 8.70% to 8.77%, 9.20% and 10.20% respectively. Nevertheless, the liquid longer end maturity of 15.09.34 was seen hitting an intraday low of 10.84% against its previous day’s closing levels of 10.85/88 on the back of renewed buying interest. In the secondary bill market, February, March and September 2020 bills changed hands at levels of 7.73%, 7.75% and 8.39% to 8.40% respectively.

The total secondary market Treasury bond/bill transacted volume for 25 September was Rs. 15.56 billion. 

In the money market, the Open Market Operations (OMO) department of Central Bank drained out an amount of Rs. 12 billion from the system by way of an overnight repo auction at a weighted average rate of 7.38% as the overnight net liquidity surplus increased further to Rs. 30.30 billion yesterday. The overnight call money and repo rates averaged 7.40% and 7.45% respectively.

Rupee losses further    

The USD/LKR rate on spot depreciated further yesterday to close the day at levels of Rs. 181.80/00 against its previous day’s closing levels of Rs. 181.55/65 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 25 September was $57.09 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 182.30/60; three months - 183.30/60 and six months - 185.05/45.