Secondary market bond yields steady as activity moderates

By Wealth Trust Securities  

The secondary bond market yields remained mostly unchanged yesterday as activity moderated considerably. Limited amount of trades were witnessed on the two 2021’s (i.e. 01.08.21 and 15.12.21), 15.03.24, 15.06.27 and 01.05.29 maturities at levels of 10.65% to 10.68%, 11.02%, 11.30% and 11.40% to 11.42% respectively.

The total secondary market Treasury bond/bill transacted volumes for 22 March was Rs. 14.94 billion.

In money markets, the net liquidity shortfall in the system stood at Rs. 5.72 billion yesterday with the Open Market Operations (OMO) department of the Central Bank of Sri Lanka injecting amounts of Rs. 10.00 billion and Rs. 6.5 billion on an overnight and 14-day basis at weighted averages of 8.70% and 8.68% respectively. The overnight call money and repo rates averaged 8.69% and 8.77% respectively.  

USD/LKR rate dips marginally 

In the Forex market, the USD/LKR rates on spot contracts dipped marginally yesterday to close the day at Rs. 178.15/25 against its previous day’s closing of Rs. 178.00/15.

The total USD/LKR traded volume for 22 March was $ 66.40 million.

Some forward USD/LKR rates that prevailed in the market were: 1 Month – 179.10/30; 3 Months – 180.90/20; 6 Months – 183.80/10.