Secondary bond market yields continue to increase

Friday, 12 February 2021 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields increased further yesterday across the yield curve on the back of renewed selling interest. The liquid maturities of 01.10.22, 01.12.24 and 15.10.27 were seen increasing to intraday highs of 5.57%, 6.67% and 7.35% respectively against its previous day’s closing levels of 5.43/53, 6.56/58 and 7.20/35. In addition, selling interest on the 15.03.22, 15.12.22, 01.01.24 and 01.08.24 saw it change hands at levels of 5.35%, 5.55%, 6.35% and 6.65% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 10 February was Rs. 0.69 billion. In the money market, overnight surplus liquidity was registered at Rs. 131.14 billion yesterday while weighted average rates on call money and repo remained mostly unchanged at 4.55% each.

Rupee appreciates

In Forex markets, USD/LKR rate on the more active one-week forward contracts were seen appreciating yesterday to close the day at Rs. 194/194.50 in comparison to its previous day’s closing level of Rs.196/198.

The total USD/LKR traded volume for 10 February was $ 49.93 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)