Secondary bond market activity remains moderate

• Money market liquidity dips to over three-week low

 By Wealth Trust Securities

Activity in the secondary bond market remained moderate with very limited trades seen on the two 2021 maturities (i.e. 01.08.21 and 15.12.21) and the two 2023 maturities (i.e. 15.03.23 & 01.09.23) at levels of 10.16% to 10.30% and 10.45% to 10.50% respectively.

The total secondary market Treasury bond/bill transacted volume for 9 May 2018 was Rs. 10.84 billion.

The net surplus liquidity in the money market was seen dipping to over a three-week low of Rs. 0.7 billion yesterday, its lowest level since a net shortfall of Rs. 12.23 billion recorded on 12 April 2018. 

The OMO Department of the Central Bank was seen mopping up an amount of Rs. 2.36 billion on an overnight basis at a weighted average of 7.59% by way of a repo auction. Call money and repo averaged 7.87% and 7.97% respectively.

Rupee steady

In Forex markets yesterday, the USD/LKR rate was steady at Rs. 157.85/00 for a second consecutive day on an equilibrium market.

The total USD/LKR traded volume for 9 May 2018 was $ 71.25 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 158.50/65; three months - 160.05/25 and six months - 162.25/40.