Secondary bond market activity remains moderate

By Wealth Trust Securities

Activity in the secondary bond market remained moderate yesterday as most market participants continued to stay on the sidelines. 

Limited trades were seen on the maturities of 2021s (i.e. 01.05.21, 01.08.21, 15.10.21 and 15.12.21), 15.07.23, 01.08.24, 15.01.27 and 01.05.29 at levels of 8.68% to 8.72%, 8.75%, 8.85% to 8.95%, 8.91% to 8.95%, 9.51% to 9.55%, 9.87% to 9.89%, 9.95% and 10.03% to 10.05% respectively. 

In addition, February and July 2020 maturities in the secondary bill market were seen changing hands at levels of 7.90% and 8.30% respectively.

The total secondary market Treasury bond/bill transacted volumes for 26 July was Rs. 6.8 billion. 

In the money market, the OMO Department of the Central Bank drained out an amount of Rs. 15.50 billion on an overnight basis by way of a repo auction at a weighted average of 7.68% as the overnight net liquidity surplus stood at a high of Rs. 45.20 billion yesterday. The overnight call money and repo rates averaged at 7.69% and 7.81% respectively.

Rupee closes mostly unchanged

In the Forex market, the USD/LKR rate on spot contracts closed the day mostly unchanged at a level of Rs. 176.15/25, subsequent to trading within the range of Rs. 176.20 to Rs. 176.27.

The total USD/LKR traded volume for 26 July was $ 54.32 million

Some of the forward USD/LKR rates that prevailed in the market were: one month – 176.65/75; three months – 177.90/10; and six months – 179.75/05.