Bond yields remain mostly unchanged as activity moderates

By Wealth Trust Securities 

The yields in the secondary bond market remained mostly unchanged yesterday as activity moderated. Trades were seen on the liquid maturities of 2021s (i.e. 15.10.21 & 15.12.21), two 2022s (i.e.15.03.22 and 01.10.22), 01.08.26, two 2027s (i.e. 15.01.27 and 15.06.27) and 01.05.29 at levels of 9.75% to 9.79%, 9.93% to 10.05%, 10.50%, 10.60% to 10.65% and 10.67% to 10.68% respectively. In addition, the shorter end maturities of 01.07.19 and 15.09.19 were seen changing hands at levels of 8.10% to 8.25% and 8.30% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 14 June was Rs. 7.32 billion. 

In money markets, the overnight call money and repo rates averaged 7.95% and 7.98% respectively as the net liquidity surplus in the system stood at Rs. 13.17 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank drained out an amount of Rs. 7 billion by way of an eight day repo auction at weighted average yields of 7.90%.

Rupee trades within a narrow range

 In the Forex market, the USD/LKR rate on spot contracts were seen trading within a narrow range of Rs. 176.78 to Rs. 177.00 yesterday before closing mostly unchanged at Rs. 176.75/85 against its previous day’s closing.

The total USD/LKR traded volume for 14 June was $ 79.16 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 177.50/65; three months -178.90/10 and six months - 181.10/30.