Secondary bond market continues dull mode

By Wealth Trust Securities

Activity in the secondary bond market remained at a standstill yesterday as most market participants continued to stay on the sidelines ahead of today’s weekly bill auction and scheduled Treasury bond auctions for Thursday.

At today’s auction, an total amount of Rs.14 billion will be on offer consisting of Rs.3 billion on the 91 day, Rs.4 billion on the 182 day and Rs.7 billion on the 364 day maturity respectively. 

At last week’s auction, the weighted average yield of the 91 day and 364 day bill increased by 03 and 04 basis points respectively to 8.35% and 9.43% while the 182 day maturity remained steady at 8.85%.  

The total volume of Treasury bonds/bills transacted in the secondary market on 9 July was Rs.2.47 billion.

In the money market, the overnight call money and repo rates averaged at 8.48% and 8.38% respectively as the Open Market Operations (OMO) department of Central Bank was seen injecting an amount of Rs.20.00 billion by way of an overnight reverse repo auction at 8.41%. The net liquidity shortfall stood at Rs.17.16 billion yesterday.

Rupee holds steady

 The USD/LKR rate on spot contracts remained steady yesterday to close the day at Rs.159.30/35.

The total USD/LKR traded volume for 9 July was $ 39.00 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 160.10/25; three months – 161.80/00; six months – 164.30/60.