Secondary bond market activity moderates

By Wealth Trust Securities

Activity in the secondary bond market moderated considerably yesterday, as most market participants were seen adopting a ‘wait-and-see’ approach.

However, buying interest in the secondary bill market, mainly on the June to September 2018 maturities, including the 01.06.18 and 15.07.18 Treasury bond maturities, saw it change hands within the range of 8.57%-8.85%. 

The total secondary market Treasury bond/bill transacted volumes for 7 March was Rs. 6.13 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 15.34 billion on an overnight basis by way of a repo auction at a weighted average of 7.27% as the net surplus liquidity in the system stood at Rs. 30.61 billion yesterday. The overnight call money and repo rates averaged 8.14% and 7.60% respectively.

Rupee dips for third consecutive day 

In Forex markets, importer demand led to the USD/LKR rate on spot contracts depreciating further to close the day at Rs. 155.40/50 against its previous day’s closing levels of Rs. 155.30/40.

The total USD/LKR traded volume for 6 March 2018 was $ 71.70 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 156.30/45; three months - 157.90/00 and six months - 160.40/55.