Bond yields continue to decrease

By Wealth Trust Securities

Secondary market bond yields continued to decrease yesterday for the sixth consecutive day, with buying interest mainly from local market participants. The liquid maturities of 15.03.23 and 01.08.24 were seen decreasing to intraday lows of 9.90% and 9.98%, respectively, against its previous day’s closing levels of 9.93/96 and 9.98/02. Meanwhile, on the short end of the yield curve, the two 2021’s (i.e. 01.03.21 and 01.05.21) were seen changing hands within the range of 9.55% to 9.60% while the 15.10.25, 01.06.26 and 01.09.28 maturities traded at levels of 10.11%, 10.20% to 10.21% and 10.25%, respectively.

The total secondary market Treasury bond/bill transacted volumes for 3 August was Rs. 2.07 billion.

In money markets, the overnight call money and repo rates decreased further to average 8.29% and 8.19%, respectively, with no OMO auctions (Open Market Operations) being conducted, and the net surplus liquidity standing at a high of Rs. 43.25 billion. 

Rupee remains 

broadly steady  

The USD/LKR rate on spot contracts remained mostly unchanged to close the day at Rs. 159.70/85.

The total USD/LKR traded volume for 3 August was $ 74.25 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 160.55/75; 3 Months - 162.15/35 and 6 Months - 164.55/85.