Bond yields remain mostly unchanged

By Wealth Trust Securities

The secondary market bond yields were seen closing the day broadly steady yesterday subsequent to trading within a narrow range. Activity was witnessed across the yield curve, consisting of the maturities 2022’s (i.e. 15.11.22 & 15.12.22), 15.09.24, 01.05.25, 2026’s (i.e. 01.02.26 & 01.06.26), 2027’s (i.e. 15.08.27 & 15.10.27) and 15.05.30 at levels of 5.5% to 5.55%, 6.03% to 6.04%, 6.3%, 6.55% to 6.6%, 6.85% to 6.9% and 7.4% to 7.41% respectively. In the secondary bill market, April and October 2021 maturities were traded at levels of 4.69% to 4.7% and 4.92% to 4.97% respectively.

The total secondary market Treasury bond/bill transacted volumes for 14 October was Rs. 30.64 billion.   

In the money market, the weighted averages on overnight call money and Repos were registered at 4.53% and 4.58% respectively as the overnight surplus liquidity stood at Rs. 183.8 billion yesterday. The DOD (Domestic Operations Department) of Central Bank injected an amount of Rs. 18 billion by way of a 13-day reverse repo auction at a weighted average rate of 4.54%, valued today.

Rupee seesaws to close stronger

The USD/LKR rate in the Forex market was seen depreciating further to Rs. 185.1 during morning hours of trading before bouncing back strongly to close the day at Rs. 184.45/60 against its previous day’s closing of Rs. 184.75/90.

The total USD/LKR traded volume for 14 October was $ 131 million.   

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