Sluggish sentiment in bond market continues; rupee appreciates

By Wealth Trust Securities

The secondary bond market commenced the fresh trading week on a sluggish note, continuing the sentiment for a second trading day.

Limited trades were witnessed on the maturities of 15.06.24 and 15.10.27 at levels of 10.00% and 10.24% to 10.30% respectively. In the secondary bill market, 13 December 2019, 31 January 2020 and 6 March 2020 maturities traded at levels of 7.45%, 7.50% and 7.65% respectively.

The total secondary market Treasury bond/bill transacted volume for 1 November 2019 was Rs.1.5 billion. 

In money markets, the overnight call money and repo rates averaged at 7.46% and 7.50% respectively as the net overnight liquidity surplus stood at Rs.19.42 billion yesterday. 

Rupee appreciates considerably

In the Forex market, the rupee on spot contracts were seen appreciating considerably yesterday to a high of Rs.180.40, before closing at a level of Rs.181.50/60 against its previous day’s closing level of Rs.181.05/20 on the back of selling interest by banks.

The total USD/LKR traded volume for 1 November was $ 63.07 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.10/20; three months – 182.10/25; six months – 184.05/20.