Bond yields remain broadly unchanged

By Wealth Trust Securities

The yields in the secondary bond market remained broadly unchanged yesterday as activity moderated toward the latter part of the first trading day of the week. 

Buying interest in morning hours of trading saw maturities of the 2021s (i.e. 01.03.21, 01.05.21 & 01.08.21), 15.03.22, 2023s (i.e. 15.03.23 and 15.12.23) and 2024s (i.e. 01.01.24, 15.03.24 and 1506.24) changing hands at levels of 8.56% to 8.85%, 9.10% to 9.14%, 9.30% to 9.50% and 9.68% to 9.72% respectively. 

In the secondary bill market, the March 2020, August 2020 and January 2021 maturities were traded at levels of 7.15% to 7.25%, 7.98% and 8.48% respectively.

The total secondary market Treasury bond/bill transacted volume for 28 February 2020 was Rs. 12.65 billion. 

In money markets yesterday, the overnight call money and repo rates averaged 6.94% and 7.01% respectively as the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 15.85 billion and Rs. 10 billion on an overnight and four-day basis respectively by way of repo auctions at weighted average rates of 6.97% and 7.01%. The net overnight liquidity in the system stood at a high of Rs. 51.73 billion yesterday.

Rupee loses 

In the Forex market, the USD/LKR rate on spot contracts was seen closing the day lower at Rs. 182.00/15, subsequent to trading within the range of Rs. 181.95 to Rs.182.29 and against its previous day’s closing level of Rs. 181.85/95.

The total USD/LKR traded volume for 28 February 2020 was $ 42.60 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 182.55/75; three months - 183.60/90 and six months - 185.15/45.

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