Bond yields broadly steady in moderate trading

By Wealth Trust Securities

The secondary market bonds were seen trading within a narrow yield range yesterday as activity moderated. Limited trades were witnessed on the maturities of 01.05.20, 15.03.23, 2024s (i.e. 15.03.24, 15.06.24 and 15.09.24), 15.10.27, 01.05.28 and 15.05.30 at levels of 7.40% to 7.43%, 9.17%, 9.45%, 9.48%, 9.48% to 9.49%, 9.64% to 9.65%, 9.75% and 9.85% to 9.86% respectively.

Meanwhile, the secondary bill market remained comparatively active with maturities of July 2020, August 2020, October 2020, November 2020 and January 2021 changing hands at levels of 7.99%, 7.97% to 8.03%, 8.36% to 8.37%, 8.26% to 8.41% and 8.52% respectively.

The total secondary market Treasury bond/bill transacted volume for 12 February was Rs. 13.58 billion. 

Meanwhile in money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs.7.2 billion on an overnight basis by way of Repo auction at a weighted average rate of 6.97% as the overnight liquidity surplus increased to Rs. 24.97 billion yesterday. The overnight call money and Repo rates averaged 6.96% and 7.03% respectively.

Rupee remains mostly unchanged 

 In the Forex market, the USD/LKR rate on spot contracts was seen closing the day mostly unchanged at Rs.181.42/48 yesterday on the back of an equilibrium market.

The total USD/LKR traded volume for 12 February was $ 89.77 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.90/05; three months – 182.90/10; six months – 184.50/70.

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