Secondary market bond yields decrease for 3rdconsecutive day

By Wealth Trust Securities

The secondary bond market witnessed moderate activity yesterday as continued buying interest led to yields decreasing for a third consecutive day across the yield curve. 

The liquid maturities of 01.08.25 and the two 2026’s (i.e. 01.06.26 and 01.08.26) saw their yields dip to intraday lows of 10.20% each and 10.22% respectively against its previous day’s closing levels of 10.27/33, 10.27/35 and 10.25/33. 

In addition, on the short end of the curve, the 2019 maturities changed hands within the range of 9.70% to 9.75% while the 15.06.27 changed hands at a level of 10.30%.

The total secondary market Treasury bond/bill transacted volumes for 14 March was Rs.8.41billion.

In money markets, the overnight call money and repo rates averaged 8.12% and 7.62% respectively as the net surplus liquidity in the system remained high at Rs.35.84 billion yesterday. 

The Open Market Operations(OMO)Department of the Central Bank of Sri Lanka drained out an amount of Rs.14.07 billion by way of two repo auctions at weighted averages of 7.27% and 7.38% respectively for periods of one and six days. 

Rupee dips to Rs.156 

for first time   

The USD/LKR rate on spot contracts dipped further yesterday to a new low of Rs.156.10 before closing at levels of Rs.156.00/10 in comparison to its previous day’s closing level of Rs.155.85/95 on the back of bank buying interest and continued importer demand.

The total USD/LKR traded volume for 14 March 2018 was $ 55.5 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month -  156.80/85; 3 Months - 158.45/55 and 6 Months - 160.95/05.