Secondary market bond yields remain broadly unchanged

By Wealth Trust Securities

The secondary market yields remained broadly unchanged yesterday with activity moderating towards the latter part of the day. A limited amount of trades consisting of the 15.12.23, 01.09.23, 15.03.25 and the 01.08.26 maturities were witnessed at levels of 11.20% to 11.27%, 11.25%, 11.40% and 11.45% to 11.46% respectively.

The total secondary market Treasury bond/bills transacted volume for 23 January was Rs. 10.63 billion. 

In the money market, the net liquidity shortfall stood at Rs. 135.82 billion yesterday with call money and repo averaging at 9.00% and 8.99% respectively. The OMO department of Central Bank was seen infusing liquidity by way of an overnight repo auction for a successful amount of Rs. 40.00 billion at weighted averages of 9.00%. A further total amount of Rs. 2.06 billion was injected by way of outright purchases of Treasury bills at weighted averages ranging of 9.50% and 9.55% respectively for duration of 70 days to 105 days, valued today.

 Rupee appreciates 

 In the Forex market, the USD/LKR rate on spot contracts appreciated yesterday to close the day at Rs. 181.65/75 against its previous day’s closing levels of Rs. 182.10/25 on the back of selling interest by Banks.

The total USD/LKR traded volume for 23 January was $ 133.75 million.Some forward USD/LKR rates that prevailed in the market: 1 month - 182.60/80; 3 months - 184.55/75; 6 months - 187.40/70.