Secondary bond market yields increase

By Wealth Trust Securities

The start of a new trading week saw secondary bond market yields increase yesterday due to the inclusion of an additional Treasury bond auction for the month of June. 

Selling interest of the two most sought after maturities of 15.12.22 and 15.01.23 resulted in their yields hitting intraday highs of 7.80% and 7.83% respectively when compared against last Friday’s closing levels of 7.67/72 and 7.73/75. 

Furthermore, both the 5 and 7 year maturities of 01.05.25 and 15.10.27 changed hands at levels of 8.55% and 8.86% respectively. Nevertheless, renewed buying interest at these levels saw yields dip marginally once again, trimming its uptick.

In the secondary bill market, the 18 December maturity changed hands at 6.80%.

The total secondary market Treasury bond/bill transacted volume for 4 June was Rs. 10 billion. 

In money markets, the weighted average rates of overnight call money and repo’s  stood at 5.82% and 5.92% respectively, with the overnight net liquidity surplus in the system prevailing at Rs. 94.13 billion. The Domestic Operations Department (DOD) of the Central Bank refrained from conducting any reverse repo auctions yesterday.

 Rupee strengthens further 

 In the Forex market, the USD/LKR rate on spot contracts strengthened further yesterday, to Rs. 185.00, prior to closing the day at Rs. 185.00/20 against its previous day’s levels of Rs. 185.45/55, backed by continued selling interest.

The total USD/LKR traded volume for 4 June was $ 66.00 million.  

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