Sluggish momentum in bond markets continue

Friday, 27 October 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary bond markets witnessed another day of dull trading yesterday as they failed to gather any momentum mainly due to a wait-and-see approach by local market participants and a slowdown in foreign interest.

A limited amount on the maturities of 1.4.18, 1.5.21 and 1.10.22 were changed at levels of 9.09% to 9.15%, 10.10% to 10.15% and 10.11% to 10.20% respectively.

The total secondary market Treasury bond/bill transacted volumes for 25 October was Rs. 7.06 billion. Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds

In money markets, the OMO Department of Sri Lanka was seen draining out an amount of Rs. 14.43 billion on an overnight basis by way of a repo auction at a weighted average of 7.25% as the net surplus liquidity in the system increased to Rs. 21.18 billion yesterday. The overnight call money and repo rates averaged 8.15% and 7.66% respectively.

Rupee appreciates

The USD/LKR rate on its spot contracts was seen appreciating for the first time in seven days to close the day at Rs. 153.55/65 against its previous day’s closing levels of Rs. 153.80/90 on the back of exporter dollar sales outweighing importer demand.

The total USD/LKR traded volume for 25 October was $ 102.85 million.

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

1 Month - 154.40/50

3 Months - 156.20/30

6 Months - 158.55/65

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.