Secondary bond market yields remain broadly steady

By Wealth Trust Securities

The secondary bond market yields remained mostly unchanged yesterday on the back of limited volumes changing hands. 

The maturities of 2019, 2021, 2023, 2026 and 2027 were traded at levels of 8.88% to 9.18%, 9.20% to 9.26%, 9.43%, 9.68% to 9.70% and 9.70% respectively. In the secondary bill market, May 2018, October 2018 and January 2019 maturities were traded at levels of 7.83% to 7.86%, 8.52% and 8.80% to 8.95% respectively.

The total secondary market Treasury bond/bill transacted volumes for 30 January was Rs.11.14 billion. In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.12% and 7.57% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs.17.40 billion on an overnight basis by way of a Repo auction at a weighted average of 7.25%.

Furthermore it continued to drain out liquidity on a permanent basis as an amount Rs.12.70 billion in total was drained out by way of an auction for outright sales of Treasury bills and two repo auctions at weighted average yields ranging from 7.44% to 7.59% for the periods of 14 days and 56 days, valued today.

Rupee continues to slide

In Forex markets, importer demand led to the USD/LKR rate on spot contracts depreciating further to close the day at Rs.154.15/25 against its previous day’s closing level of Rs.154.00/10.

The total USD/LKR traded volume for 30 January was $ 113.65 million. Some of the forward USD/LKR rates that prevailed in the market were: one month – 154.90/00; three months – 156.70/80; and six months – 159.15/30.