Downward momentum in bond yields continue

Friday, 17 July 2020 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The downward momentum in secondary market bond yields continued yesterday on the back of persistent buying interest. The yields on the liquid maturities of 15.12.22, 15.01.23, 15.09.24, 01.05.25 and 01.02.26 were seen hitting intraday lows of 5.32%, 5.37%, 6.02%, 6.24% and 6.40% respectively against its previous day’s closing levels of 5.42/45, 5.45/52, 6.08/13, 6.28/33 and 6.43/48. In addition, maturities of 15.10.21, 01.07.22, 01.09.23, 2024s (i.e. 15.03.24 & 15.06.24), 15.03.25 and 01.08.26 were traded at levels of 5.00%, 5.30%, 5.60%, 6.00% to 6.10%, 6.21% and 6.45% to 6.55% respectively as well.

In secondary bills, October 2020 to February 2020 maturities were seen changing hands at levels of 4.53% to 4.60% while July 2021 maturities traded at 4.80%.

The total secondary market Treasury bond/bill transacted volume for 15 July was Rs. 42.58 billion.

In money markets, the overnight call money and repo rates averaged 4.53% and 4.55% respectively as the overnight liquidity surplus in the system stood at Rs. 156.89 billion yesterday.

LKR appreciates marginally

In the Forex market, the USD/LKR rate spot contracts appreciated marginally to close the day at levels of Rs. 185.75/82 yesterday subsequent to trading within the range of Rs. 185.78 to Rs. 185.83.

The total USD/LKR traded volume for 15 July was $ 100.59 million.

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