Secondary bond market remains dull

By Wealth Trust Securities 

Lackluster activity was witnessed in the secondary Treasury bond market yesterday, with the liquid 15.05.23 maturity changing hands within the range of 10.80% to 10.82% as against the previous day’s closing level of 10.79/81. 

Furthermore, maturities of 01.06.18, 15.11.18, 01.05.19 and 01.06.26 were traded at levels of 9.60% to 9.65%, 9.68% to 9.72%, 9.80% to 9.90% and 11.02% to 11.15% respectively. Meanwhile, in the secondary Treasury bill market, the November 2017 and January 2018 bills were seen changing hands within the range of 9.07% to 9.08% and 9.29% to 9.35% respectively.

The total secondary market Treasury bond/bill transacted volume for 18 August was Rs. 5.60 billion.

In money markets, the overnight call money and repo rates averaged at 8.57% and 8.40% as the net surplus liquidity in the system stood at Rs. 25.72 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 6.83 billion on an overnight basis at a weighted average of 7.28%.

 Rupee appreciates 

once again 

The USD/LKR rate on spot contracts was seen appreciating once again yesterday to close the day at Rs. 153.10/15 against its previous day’s closing of Rs. 153.32/40 on the back of exporter conversions. The total USD/LKR traded volume for 18 August 2017 was $ 50.25 million.

 Some of the forward USD/LKR rates that prevailed in the market were one month - 154.00/10; three months - 155.90/10 and six months - 158.35/65.