Secondary bond market sentiment remains bullish

By Wealth Trust Securities

The sentiment in the secondary bond market remained bullish yesterday as buying interest continued across the yield curve following the policy rate cut the previous day. 

The market favorite maturities of 15.03.23 and 01.09.28 were seen dipping to intraday lows of 10.10% and 10.46% respectively against its previous day’s closing levels of 10.44/50 and 10.80/90. In addition, buying interest on the 2021 maturities saw it change hands within the range of 9.85% to 10.10% while in the secondary bill market, the 364 day bill changed hands within the range of 9.65% to 9.82%.

The total secondary market Treasury bond/bill transacted volumes for 4 April 2018 was Rs. 11.46 billion.

In money markets, the overnight call money and repo rates decreased further to average 7.98% and 8.11% respectively as the net surplus liquidity in the system increased further to Rs. 40.04 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 20 billion on an overnight basis by way of an overnight Reverse repo auction at a weighted average of 8.00%.

Rupee appreciates

In the Forex market, the USD/LKR rates on spot contracts were seen appreciating yesterday to close the day at Rs. 155.42/52 against its previous day’s closing levels of Rs. 155.85/00 on the back of selling interest by banks and inward remittances.

The total USD/LKR traded volume for 4 April 2018 was $ 88.25 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 156.15/25; three months - 157.55/70 and six months - 159.85/95.