Bond yields decline marginally as activity picks up

By Wealth Trust Securities

The start of a fresh trading week saw secondary market bond yields declining marginally yesterday as activity increased as well. Foreign and local buying interest saw yields on the 01.08.21, 15.03.23, 01.08.24, 01.08.26, 01.09.27 and 01.09.28 dip to intraday lows of 10.15%, 10.40%, 10.50%, 10.60% and 10.65% each respectively against its days opening highs of 10.20%, 10.45%, 10.55%, 10.65% and 10.70% each.

The total secondary market Treasury bond/bill transacted volume for 11 May was Rs.2.87 billion.

The OMO (Open Market Operations) department of Central Bank was seen draining out an amount of Rs.6.5 billion on an overnight basis at a weighted average of 7.50% yesterday by way of an overnight repo auction as net surplus liquidity stood at Rs.7.15 billion. Call money and repo averaged at 7.87% and 7.92% respectively. 

Rupee dips marginally

The USD/LKR rate on spot contracts was seen closing lower at Rs.157.95/20 yesterday against its previous day’s closing of Rs.157.85/00 on the back of importer demand. 

The total USD/LKR traded volume for the 11 May was $63.15 million.

Some forward USD/LKR rates that prevailed in the market: 1 Month - 159.00/20; 3 Months - 160.30/40; 6 Months - 162.40/50.