Secondary bond market yields decrease further

By Wealth Trust Securities 

The secondary market bond yields were seen decreasing further yesterday on the back of continued buying interest. The market favourite 15.09.24 maturity was seen hitting an intraday low of 9.90% against its previous day’s closing levels of 9.95/97 while maturities of 15.12.21 and 15.09.34 dipped to lows of 8.65% and 10.61% respectively. In addition, maturities of 01.10.22, 15.05.23, 15.03.24, 15.06.27 and 01.05.29 were seen changing hands at levels of 9.14% to 9.23%, 9.60% to 9.64% 9.94%, 10.25% and 10.38% to 10.39% respectively. In the secondary bill market, 16 October 2020 maturity traded at level of 8.30%.

The total secondary market Treasury bond/bill transacted volume for 23 October was Rs. 16.72 billion. 

In money markets, the overnight call money and repo rates averaged 7.41% and 7.46% respectively as the overnight net liquidity surplus in the system stood at Rs. 23.75 billion yesterday. The Open Market Operations (OMO) Department of Central Bank refrained from conducting any cash value auctions yesterday. However it injected an amount Rs. 14.80 billion for 14 days at a weighted average rate of 7.56%, valued today.

 Rupee appreciates for fifth consecutive day

In the Forex market, the upward movement on the LKR continued for a fifth consecutive day as Rupee on its spot contracts was seen closing the day at Rs. 181.23/20 against its previous day’s closing level of Rs. 181.30/40 on the back of continued selling interest by banks.

The total USD/LKR traded volume for 23 October was $ 45.98 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 181.85/00; three months - 183.00/15 and six months - 184.80/95.