Secondary bond market remains active

By Wealth Trust Securities

The secondary bond market remained active yesterday as yields on the maturities of the three 2021’s (i.e. 1.3.21, 1.5.21 and 1.8.21) and 1.8.26 were seen decreasing further to hit intraday lows of 9.95%, 9.97% and 10.00% respectively on the back of continued buying interest.  

In addition the maturities of 1.5.20 and 1.9.23 were seen changing hands at levels of 9.80% to 9.83% and 10.10% to 10.12% as well. In the secondary bill market, August, September and November 2018 bills were traded at levels of 9.02%, 9.05% to 9.25% and 9.35% respectively. 

The total secondary market Treasury bond/bill transacted volumes for the 22 November 2017 was Rs. 9.23 billion.

In money markets, the overnight call money and repo rates remained steady to average 8.14% and 7.57% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained an amount of Rs. 11.08 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%. The net surplus in the system stood at Rs. 24.95 billion yesterday.

Rupee appreciates

In Forex markets, the USD/LKR rate on spot contracts were seen appreciating yesterday to close the day at Rs.153.62/68 against its previous day’s closing levels of Rs. 153.76/82 on the back of export conversion.

The total USD/LKR traded volume for 22 November 2017 was $ 34.93 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.40/55; three months - 156.25/35 and six months - 158.95/10.