Secondary market bonds trade within narrow range

Friday, 22 June 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market yields closed broadly unchanged yesterday, with moderate volumes trading within a narrow band.

Maturities consisting of the two 2018s (i.e. 15.08.18 and 15.11.18), 15.01.19, 15.12.20, three 2021s (i.e. 01.03.21, 01.05.21 and 15.12.21), 15.03.23 and 15.06.27 were seen changing hands at levels of 8.40%, 8.80%, 9.10%, 9.75%, 9.95%, 10.00%, 10.10%, 10.44% to 10.46%, and 10.70% to 10.72% respectively.

In the secondary bill market, November 2018, March and June 2019 maturities were traded at levels of 8.70%, 9.03% to 9.20% and 9.20% to 9.40% respectively.

The total volume of bonds transacted in the secondary market on 20 June 2018 was Rs. 8.89 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

In money markets, the overnight call money and repo rates averaged 8.46% and 8.41% respectively with the net deficit in the system reducing further to Rs. 7.08 billion. The OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 15 billion at a weighted average yield of 8.46% by way of an overnight reverse repo auction.

Rupee appreciates

The USD/LKR rate on spot contracts appreciated yesterday to close the day at Rs. 159.55/65 against its previous day’s closing levels of Rs. 159.95/05, on the back of selling interest resulting from the release of $ 584 million on account of the Hambantota Port project.

The total USD/LKR traded volume for 20 June 2018 was $ 66.64 million.

Given below are some forward USD/LKR rates that prevailed in the market.

1 Month - 160.30/50

3 Months - 161.85/05

6 Months - 164.30/60