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The secondary bond market remained active yesterday as yields were seen increasing across the yield curve for a second consecutive trading day on the back of continued foreign and local selling interest. The liquid maturities of 01.03.21, two 2026’s (i.e. 01.06.26 and 01.08.26) and 15.06.27 were seen increasing to intraday highs of 9.30%, 9.80%, 9.85% and 9.78% respectively against its previous day’s closing levels of 9.14/22, 9.58/65, 9.55/63 and 9.65/70 while the 01.05.20, and the other 2021 maturities (i.e. 01.05.21, 01.08.21 and 15.12.21) were seen changing hands within the range of 9.08% to 9.20% and 9.20% to 9.38% respectively.
At today’s weekly Treasury bill auction, a total amount of Rs. 21.5 billion will be on offer consisting of Rs. 9.0 billion on the 182 day and Rs. 12.5 billion on the 364 day bill. At last week’s auction, the weighted averages on the 182 day bill and the 364 day bill decreased to 8.06% and 8.80% respectively.
The total secondary market Treasury bond/bill transacted volumes for 12 January 2018 was Rs. 6.15 billion.
Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.
Meanwhile in money markets, the overnight call money and repo rates averaged 8.11% and 7.54% respectively as the net surplus liquidity in the system stood at Rs. 17.17 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 6.52 billion on an overnight basis at a weighted average of 7.25%.
Furthermore, the OMO Department continued to drain out liquidity on a permanent basis as it was seen mopping up total an amount of Rs. 8.15 billion by way of a term repo auction and two auctions for outright sales of Treasury bills at weighted averages ranging from 7.34% to 7.52% for three to 37 days.
The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at Rs. 153.95/00 on the back of an equilibrium market.
The total USD/LKR traded volume for 12 January 2017 was $ 60.40 million.
Given below are some forward USD/LKR rates that prevailed in the market.
1 Month - 154.85/00
3 Months - 156.45/60
6 Months - 158.85/00
