Bond market yields remain broadly steady as momentum remains dull

By Wealth Trust Securities

Secondary market bond yields remained mostly unchanged yesterday within dull trades. 

The short dated maturities of 01.07.19 and 15.09.19 were seen changing hands within the range of 9.60%-9.73% while the 01.05.20 and 01.03.21 traded at levels of 9.78% and 9.85% respectively. Furthermore, the 01.08.25 and 15.05.30 maturities were seen trading at levels of 10.20% and 10.45%. Meanwhile, in secondary bills market, continued buying interest resulted in the 364 day maturity changing hands at levels of 9.60%-9.63%.

The total secondary market Treasury bond/bill transacted volumes for 21 March 2018 was Rs. 6.68 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 18.38 billion on an overnight basis by way of a repo auction at a weighted average of 7.27% as the net surplus liquidity in the system stood at Rs. 23.42 billion. The overnight call money and repo rates averaged 8.15% and 7.65% respectively.

Rupee dips marginally

The USD/LKR rate on spot contracts was seen losing marginally yesterday to close the day at Rs. 156.12/20 on the back of importer demand.

The total USD/LKR traded volume for 21 March 2018 was $ 77.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 156.80/90; three months - 158.32/42 and six months - 160.62/72.