Bond yields broadly steady in thin range trading

By Wealth Trust Securities

The secondary market bond yields were seen closing the day broadly steady yesterday subsequent to trading within a narrow range. 

Activity was witnessed across the yield curve, consisting of the maturities of three 2021’s (i.e. 01.03.21, 01.08.21 and 15.12.21), 15.03.22, 15.03.23, 15.03.24, two 2027’s (i.e. 15.01.27 and 15.06.27), 01.09.28 and 01.05.29 at levels of 10.25% to 10.40%, 10.50%, 10.74% to 10.78%, 10.90%, 11.10% to 11.18%, 11.20% and 11.22% to 11.25% respectively

The total secondary market Treasury bond/bill transacted volumes for 24 April was Rs.5.12 billion. Meanwhile in money markets, the overnight call money and repo rates remained mostly unchanged yesterday as the OMO department of Sri Lanka was seen injecting amounts of Rs.0.65 billion and Rs.10.00 billion by way of an overnight and 14 day reverse repo auction at weighted averages of 8.52% and 8.58% respectively. 

Rupee loses marginally 

 The USD/LKR rate on its spot contract lost its value further yesterday to close at Rs.175.00/50 against its previous day’s closing levels of Rs.174.90/30 on the back of continued buying interest by Banks. 

The total USD/LKR traded volume for 24 April was $ 40.08 million

Given are some forward USD/LKR rates that prevailed in the market: one month – 176.00/50; three months – 178.00/50; six months – 181.00/50.