Positive momentum in secondary bond markets continue

By Wealth Trust Securities

The positive momentum witnessed in the secondary bond market continued yesterday as well, with yields decreasing further for a third consecutive day. Maturities consisting of the 15.12.21, two 2023’s (i.e. 15.05.23 and 15.07.23), 15.06.27 and 01.09.28 were the most sort after, with their yields decreasing to lows of 11.85%, 11.92%, 11.93%, 12.29% and 12.38%, respectively, against its previous day’s closing levels of 11.75/85, 11.95/00, 11.95/00, 12.28/33, and 12.30/45.

In the secondary bill market, the latest 364-day maturity changed hands at levels of 11.11% to 11.15%.

The total secondary market Treasury bond/bill transacted volumes for 28 November was Rs. 9.15 billion. 

In the money market, overnight call money and repo rates averaged 8.96% and 8.84%, respectively, as the OMO Department of the Central Bank infused liquidity for durations ranging from overnight to seven days of amounts of Rs. 20 billion and Rs. 4.75 billion at weighted average yields of 8.55% and 8.44%, respectively, with the net liquidity shortfall decreasing to Rs. 40.14 billion.

Rupee remains below Rs. 180 

The USD/LKR rate on spot contracts remained steady yesterday to close the day at Rs. 179.60/90.

The total USD/LKR traded volume for 28 November was $ 56.38 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 month – 180.60, 3 months – 182.70/20, and 6 months – 185.70/20.