Secondary bond market activity remains moderate 

By Wealth Trust Securities

Activity in the secondary bond market remained tame yesterday, with yields holding steady and most market participants seen on the sidelines. 

Limited trades were witnessed consisting of the liquid maturities of 01.03.21, 01.09.23 and 01.08.26 within the range of 9.30% to 9.32%, 9.45% to 9.53% and 9.67% to 9.72%, while on the short end of the yield curve the 01.06.18, 15.08.18 and 15.10.18 maturities traded at levels of 8.00%, 8.18% and 8.53%-8.56% respectively.

The total secondary market Treasury bond/bill transacted volumes for 24  January 2018 was Rs. 4.06 billion.

 Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

Meanwhile, in money markets, the weighted average yield of overnight call money and repos remained mostly unchanged to average 8.15% and 7.54% respectively, with the net surplus liquidity in the system increasing to Rs. 11.97 billion. 

The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 7 billion on an overnight basis at a weighted average of 7.25% by way of a repo auction. Furthermore, it drained out an amount of Rs. 11.03 billion by way of two outright sales of Treasury bills and two term repo auctions at weighted average yields ranging from 7.48% to 7.80% for periods of 14 days to 119 days, value tom.

Rupee dips once again

 Meanwhile, in the Forex market, the USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs. 153.70/78 against its previous day’s closing levels of Rs. 153.65/75 on the back of renewed dollar buying interest by banks.

 The total USD/LKR traded volume for 24 January 2017 was $ 90.75 million.

 Given below are some forward USD/LKR rates that prevailed in the market, 

1 Month -    154.50/65

3 Months -  156.00/15

6 Months -   58.40/55