Secondary bond market remains active

By Wealth Trust Securities

The secondary bond market continued to remain active with yields declining marginally on the back of renewed buying interest mainly from foreign investors. 

The liquid maturities of 01.05.20 and 01.08.24 saw its yields dip to intraday lows of 9.87% and 10.20% respectively against the opening highs of 9.90% and 10.30%.  Furthermore, the 01.05.21, 01.08.25 and the  two 2026 maturities (i.e. 01.06.26 and 01.08.26) were seen changing hands at levels of 10.07%, 10.32%, 10.41% and 10.35% respectively.  

The total secondary market Treasury bond/bill transacted volumes for 31 October 2017 was Rs. 11.73 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount for Rs. 10.5 billion at a weighted average rate of 7.25% by way of an overnight repo auction as the net surplus liquidity in the system increased to Rs. 19.75 billion. The overnight call money and repo rates averaged 8.15% and 7.72% respectively.

 Rupee loses 

The USD/LKR rate on spot contracts was seen depreciating yesterday to close the day at levels of Rs. 153.65/73 against its previous day’s closing levels of Rs. 153.50/60 on the back of importer demand.

The total USD/LKR traded volume for 31 October 2017 was $ 72.5 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.50/65; three months - 156.40/50 and six months - 158.80/95.