Bond yields nudge up marginally in moderate trading

By Wealth Trust Securities

Secondary bond market yields were seen increasing marginally yesterday, mainly on the liquid two maturities of 15.09.24 and 15.09.34 to intraday highs of 10.28% and 10.92% respectively against their previous day’s closing levels of 10.25/30 and 10.82/88, amidst moderate volumes changing hands.  

In addition, the 01.08.21 maturity was seen changing hands at a level of 8.80% as well.

The total secondary market Treasury bond/bill transacted volume for 20 September 2019 was Rs. 2.86 billion. 

In the money market, the Open Market Operations (OMO) Department of the Central Bank refrained from conducting any cash valued auctions as the overnight net liquidity surplus in the system decreased to Rs. 12.90 billion yesterday. However, an amount of Rs. 20 billion was injected for 14 days at a weighted average rate of 7.46%, valued today. The overnight call money and repo rates averaged 7.40% and 7.41% respectively.

Rupee loses

In the Forex market, the USD/LKR rate on spot contracts was seen depreciating further to close the day at Rs. 181.50/60 against its previous day’s closing levels of Rs. 181.10/25 on the back of continued buying interest by banks.

The total USD/LKR traded volume for 20 September 2019 was $ 60.11 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 182.20/40; three months - 183.05/45 and six months -184.45/85.