Secondary bond market activity moderates once again

By Wealth Trust Securities

Activity in the secondary bond market diminished once again yesterday, with limited trades of the two 2021 maturities (i.e. 01.05.21, 15.12.21) and the 15.06.17 maturity taking place at levels of 9.70% each and 10.20% respectively. 

Meanwhile, in the secondary bill market, the March, April, July, September and November 2018 maturities were traded at levels of 7.50% to 7.60%, 8.06% to 8.12%, 8.65%, 8.85% and 8.95% to 9.00% respectively.

The total secondary market Treasury bond/bill transacted volumes for 20 December 2017 was Rs.59.25 billion.

In money markets, the Central Bank’s Open Market Operations (OMO) Department was seen mopping up excess liquidity by way of a term repo auction. The auction drained out an amount of Rs. 10 billion at a weighted average yield of 7.31% for five days. 

Furthermore, an amount of Rs. 9.02 billion was mopped up on an overnight basis at a weighted average of 7.25% as the net surplus liquidity increased to Rs. 34.53 billion. The overnight call money and repo rates averaged 8.12% and 7.53% respectively.

Rupee appreciates further

The USD/LKR rate on spot contracts was seen appreciating further yesterday, to close the day at Rs. 152.85/95 against its previous day’s closing levels of Rs. 152.90/05, on the back of continued exporter dollar conversions.

The total USD/LKR traded volume for 20 December 2017 was $ 59.25 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.85/95; three months - 155.65/75 and six months - 158.35/50.