Yields remain broadly steady as activity moderates

By Wealth Trust Securities

The secondary bond market yields remained broadly unchanged yesterday as activity moderated. 

A limited amount of activity was seen on the two maturities of 2021 (i.e. 01.08.21 and 15.10.21) within the range of 10.00% to 10.12% and 10.08% to 10.18% respectively and on the 01.01.24, 15.03.25 and 15.06.27 maturities at levels of 10.32%, 10.41% to 10.45% and 10.32% to 10.36% respectively. In addition, the 2019 maturities were seen changing hands at 9.75% as well.

The total secondary market Treasury bond/bill transacted volumes for 11 October 2017 was Rs.12.54 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 5.02 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 stood at Rs.16.03 billion yesterday. The overnight call money and repo rates averaged 8.13% and 7.92% respectively.

Value of rupee 

dips further

In the Forex market, the downward trend in the value of the rupee continued as the USD/LKR spot rate was seen closing the day at Rs.153.65/75 against its previous day’s closing levels of Rs.153.50/55 on the back of continued importer demand.

The total USD/LKR traded volume for 11 October was $ 58.00 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.40/60; three months - 156.20/30 and six months - 158.50/60.