Positive sentiment continues as yields decrease further

By Wealth Trust Securities

The fresh trading week commenced on a positive note, continuing from its previous week as yields continued to decline on the back of buying interest. The liquid maturities of 15.11.22, 15.01.23, 15.07.23, 15.09.24, 01.05.25, 01.02.26 and 15.08.27 hit intraday lows of 5.60%, 5.63%, 5.80%, 6.13%, 6.40%, 6.62% and 6.90% respectively, against its Fridays closing levels of 5.60/68, 5.65/72, 5.80/90, 6.15/20, 6.40/50, 6.65/70 and 6.90/95. 

In the secondary bill market, 6 November, 18 December and 14 May 2021 maturities were traded at levels of 4.60% to 4.68% and 4.82% respectively.  The total secondary market Treasury bond/bill transacted volumes for 9 October was Rs. 5 billion.   

In the money market, the overnight call money and repos registered weighted averages of 4.52% and 4.61% respectively, as the DOD (Domestic Operations Department) of the Central Bank injected an amount of Rs. 4 billion by way of a 14 day reverse repo auction at a weighted average rate of 4.54%, subsequent to offering Rs. 10 billion, valued today. The overnight net liquidity surplus stood at Rs. 181.76 billion yesterday.

Rupee broadly steady

In the Forex market, USD/LKR rate on spot contracts was seen closing the day mostly unchanged at Rs. 184.15/25 yesterday, subsequent to changing hands within the range of Rs. 184.15 to Rs. 184.26.

The total USD/LKR traded volume for 9 October was $ 102 million.   

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