Bond yields increase in moderate trading; liquidity increases further

By Wealth Trust Securities

The start of a fresh trading week saw secondary market bond yields increase further yesterday on the back of moderate activity. 

The yields on the liquid maturities of 15.12.22, 15.09.24 and 15.10.27 were seen hitting highs of 5.80%, 6.38% and 7.12% respectively against its previous day’s closing levels of 5.70/80, 6.27/33 and 7.04/12. In addition, maturities of 01.08.21 and 15.03.22 traded at levels of 4.84% to 4.85% and 5.45% respectively as well. In secondary market bills, 15 January 2021 maturity changed hands at a level of 4.62%.

Meanwhile, money market liquidity continued to improve as the overnight surplus liquidity reflected a 12 day high of Rs.188.88 billion yesterday. The weighted average rates on overnight call money and repo was registered at 4.54% and 4.66% respectively.

The total secondary market Treasury bond/bill transacted volumes for 13 November was Rs. 7 billion.   

 

Rupee depreciates 

The USD/LKR rate on spot next contracts depreciated yesterday to close the day at Rs. 185.30/50 on the back of buying interest by banks.

The total USD/LKR traded volume for 13 November was $ 85.85 million.   

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, money broking companies)