Foreign buying returns to bond market; yields hold steady

By Wealth Trust Securities 

Secondary market bond yields closed the day steady yesterday despite foreign buying amidst local selling. 

Activity centered on the 15.12.2021 and 01.08.2026 maturities as it was seen changing hands within the range of 11.78% to 11.80% and 12.00% to 12.07% respectively. In addition, March 2019 maturities in the secondary bill market traded at levels of 10.00% as well. 

In money markets, the OMO Department of the Central Bank infused liquidity by way of an overnight and a seven-day term reverse repo auction for successful amounts of Rs. 25 billion each at weighted average yields of 8.84% and 8.86% as the net liquidity shortfall in the system increased to Rs. 107.11 billion yesterday. The overnight call money rate averaged 8.99%.

Rupee steady  

In the Forex market yesterday, the USD/LKR rate on spot contracts was seen closing the day steady at Rs. 179.90/10 as markets were at equilibrium. 

The total USD/LKR traded volume for 14 December 2018 was $ 81.87 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 180.90/30; three months - 182.90/30 and six months - 185.90/30.