Bond yields decline marginally in moderate trading

By Wealth Trust Securities

Secondary market bond yields were seen declining marginally yesterday mainly on the short end to the belly end of the yield curve on moderate volumes changing hands.  

Yields on the three 2019’s (01.05.19, 01.07.19, 15.09.19), 01.05.20, the three 2021’s (01.03.21, 01.05.21, 01.08.21) and the 01.07.22 were seen changing hands within the range of 9.37% to 9.45%, 9.72% to 9.74%, 9.88% to 9.95% and 10.01% to 10.10% respectively while on the long end of the curve, 15.06.27 and 15.05.30 were seen changing hands at levels of 10.30% and 10.60% respectively.

The total secondary market Treasury bond/bill transacted volumes for 8 December was Rs. 7.06 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.                      

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining an amount of Rs. 14.58 billion on an overnight basis by way of a repo auction at a weighted average of 7.25% as the net surplus in the system stood at Rs. 19.10 billion yesterday. The overnight call money and repo rates averaged 8.13% and 7.56% respectively.

Rupee steady

In Forex markets, the USD/LKR rate on spot contracts remained steady to close the day at Rs. 153.00/10 as the market was at an equilibrium.

The total USD/LKR traded volume for 8 December 2017 was $ 29.52 million.

Given below are some of the forward USD/LKR rates that prevailed in the market. 

1 Month -  154.10/20

3 Months - 155.65/80

6 Months - 158.30/50