Downward trend in bond yields continues

By Wealth Trust Securities

The downward trend in bond yields persistent yesterday on the back of continued buying interest across the yield curve. 

The yields on the liquid maturities 15.12.22, 01.10.23, two 2024s (i.e. 15.09.24 and 01.12.24) and 01.02.26 were seen dipping to intraday lows of 5.32%, 5.63%, 6.18%, 6.22% and 6.55% respectively against its previous day’s lows of 5.35%, 5.69%, 6.20%, 6.24% and 6.60%. 

In addition maturities of 15.03.22, 01.10.22, 01.05.25 and 15.05.30 traded at levels of 5.10%, 5.25%, 6.32% to 6.35% and 7.65% as well. 

In secondary bills, April 2021, October 2021 and January 2022 maturities changed hands at levels of 4.67% to 4.68%, 4.83% and 4.98% respectively. 

The total secondary market Treasury bond/bill transacted volumes for 12 January was Rs. 44.16 billion.

In the money market, weighted average rates on overnight call money and repo remained mostly unchanged to average 4.54% and 4.56% respectively while overnight surplus liquidity decreased to Rs. 204.38 billion yesterday.

 Rupee continues to depreciate

 The USD/LKR rate on spot next contracts was seen depreciating further yesterday to close the day at Rs. 194.00/195.50 against its previous day’s closing of Rs. 192.00/193.50 on the back of continued demand by banks. 

The total USD/LKR traded volume for 12 January was $ 40.15 million.   

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