Weekly averages continue to decline

Wednesday, 25 July 2018 00:00 - - {{hitsCtrl.values.hits}}

Secondary market bond yields follow suit

By Wealth Trust Securities

Continued demand saw the weighted average on the 364-day bill dip for a second consecutive week, this time around by four basis points to 9.27% with an amount of Rs. 21 billion being accepted on it against its offered amount of Rs. 12 billion.

The 91 day and 182 day recorded drops of one basis point each, totalling an accepted amount of Rs. 2.99 billion with the total offered amount of Rs. 24 billion being successfully subscribed.

In the secondary bond market, activity increased yesterday with yields deceasing across the yield curve before bouncing back to close the day broadly unchanged. Local buying interest on the maturities of 01.03.21, 01.10.22, 15.03.23, 01.08.24 and 01.09.28 saw yields decrease to intraday lows of 9.75%, 10.00%, 10.16%, 10.22% and 10.50% respectively against their previous day’s closing levels of 9.77/83, 10.15/30, 10.23/27, 10.25/33 and 10.52/60 respectively. In addition the 2019’s and 2020’s were seen changing hands at levels of 9.23% to 9.40% and 9.50% to 9.58%.

The total secondary market Treasury bond/bill transacted volumes for 23 February 2018 was Rs. 4.53 billion.

In money markets, the overnight call money and repo rates averaged 8.50% and 8.34% respectively as the net surplus in the system increased to Rs. 15.13 billion yesterday. The Open Market Operations Department of the Central Bank of Sri Lanka drained out an amount of Rs. 9 billion on an overnight basis by way of a repo auction at a weighted average of 7.94%.

Rupee remains mostly unchanged

In the Forex market, the USD/LKR rate on spot contracts remained mostly unchanged to close the day at Rs. 159.50/55.

The total USD/LKR traded volume for 23 July 2018 was $ 70.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 160.33/37; three months - 161.88/98 and six months - 164.23/38.

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