Secondary market bond yields continue to increase

By Wealth Trust Securities

The secondary bond market yields were seen see sawing on Wednesday as continued selling interest mainly on the maturities of 01.08.21, 15.12.21, 01.08.25 and 01.08.26 saw its yields increase to intraday highs of 10.25%, 10.30%, 10.65% and 10.45% respectively in morning hours of trading against its previous day’s closing levels of 10.10/20, 10.00/15, 10.45/60 and 10.35/45. Nevertheless buying interest towards the later part of the day saw yields dip marginally once again from its highs as volumes changing hands remained thin. 

The total secondary market Treasury bond/bill transacted volumes for 3 October 2017 was Rs. 3.45 billion.

In money markets, the overnight call money and repo rates averaged 8.11% and 7.95% respectively the net surplus liquidity in the system stood at Rs. 14.06 billion. The OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs. 6.3 billion on an overnight basis by way of a repo auction at a weighted average of 7.26%.  

Rupee dips for a third consecutive day

 In the Forex market, the USD/LKR spot rate depreciated further for a third consecutive day to close the day at Rs. 153.30/40 against its previous day’s closing level of Rs. 153.22/28 on the back of importer demand outweighing inward remittances. 

The total USD/LKR traded volume for 3 October 2017 was $ 39.15 million.

 Some of the forward USD/LKR rates that prevailed in the market were one month – 154.10/20; three months – 155.85/95 and six months – 157.95/15.