Bond yields decline for a second consecutive day  

By Wealth Trust Securities

The secondary bond market became active as yields were seen declining for a second consecutive day on the back of continued buying interest yesterday. Demand on the liquid maturities of 01.05.24, two 2027’s (i.e., 01.05.27 & 15.09.27) and 01.07.32 saw its yields dip to intraday lows of 28.50%, 26.97%, 26.75% and 22.50% respectively against its previous day’s closing level of 29.00/30.00, 27.25/75 each and 22.50/25. In secondary bills, the latest 182-day bill traded at a low of 25.00% as well. 

The total secondary market Treasury bond/bill transacted volume for 17 May 2023 was Rs.48.06 billion.

In money markets, the weighted average rates on overnight call money and REPO stood at 16.47% and 16.50% respectively while the net liquidity shortfall stood at Rs.43.77 billion yesterday. An amount of Rs.32.04 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 15.50% against an amount of Rs.75.81 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 16.50%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs.306.50/307.25 against its previous day’s closing level of Rs.305.80/306.20, subsequent to trading at a high of Rs.305.00 to a low of Rs. 307.00.The total USD/LKR traded volume for 17 May was $ 128.38 million.