Bond yields increase marginally

By Wealth Trust Securities 

The secondary market bond yields increased marginally yesterday on the back of moderate volumes changing hands. Selling interest on the maturities of 15.01.28, 15.07.29 and 01.07.32 saw its yields edge up to intraday highs of 31.00%, 31.05% and 29.90% respectively against its previous day’s closing levels of 30.80/00 each and 29.40/75.

At today’s auction, a total of Rs. 75 billion will be on offer, consisting of Rs. 30 billion on the 91 day, Rs. 25 billion on the 182 day and a further Rs. 20 billion on the 364-day maturities. At last week’s auction, the weighted average rates on the 91 day and 182-day bills increased to 33.05% and 32.53% respectively while the average on the 364-day bill dipped to 29.60% while only Rs. 60.31 billion was accepted in total against a total offered amount of Rs. 90 billion. The phase two for the 182- and 364-day bills was opened as well.

The total secondary market Treasury bond/bill transacted volume for 17 October was Rs. 1.60 billion.   

In money markets, an amount of Rs. 687.49 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50% while an amount of Rs. 327.21 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50%, leading to a net liquidity deficit of Rs. 360.28 billion yesterday. The weighted average rates on overnight Call money stood at 15.50%.

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 363.38 yesterday.

The total USD/LKR traded volume for 17 October was $ 10.00 million.  

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