Secondary market bond yields edge up marginally

By Wealth Trust Securities

The start of a new month and a new financial year saw secondary market bond yields increasing marginally yesterday on the back of healthy volumes changing hands. Selling interest on the liquid maturities of 15.03.23, 01.08.26, and 01.09.28 resulted in their yields edging up to intraday highs of 10.70%, 10.82%, and 11.17% respectively, against its previous day’s closing levels of 10.55/58, 10.60/80, and 11.00/05.

The total secondary market Treasury bond/bill transacted volumes for 29 March was Rs.10 billion.

In money markets, the net liquidity position in the system turned negative for the first time yesterday (2 April) since 14 July 2017 to record a shortfall of Rs.2.14 billion. The Open Market Operations (OMO) department of the Central Bank infused an amount of Rs.30 billion on an overnight basis by way of an overnight reverse repo auction at a weighted average of 8.54% as the overnight call money and repo rates increased further to average at 8.45% and 8.42% respectively.

Rupee continues to appreciate

The seasonal remittances along with foreign buying in Rupee bonds saw the USD/LKR rate appreciate further to close the day at Rs.155.20/25 against its previous day’s closing levels of Rs.155.55/65.

The total USD/LKR traded volume for 29 March was $ 75.15 million.

Some forward USD/LKR rates that prevailed in the market: 1 Month - 155.90/00; 3 Months - 157.55/70; 6 Months - 159.70/00.