Yields remain broadly steady as activity moderates

The secondary bond market yields remained broadly unchanged yesterday as activity moderated. A limited amount of trades were witnessed on the maturities of 01.08.20, 01.03.21, 01.10.22, 15.03.23 at levels of 9.60%, 9.75% to 9.78%, 10.10% and 10.15% to 10.22%, respectively. In the secondary bill market, June and July 2018 bills were traded within the range of 9.20% to 9.25%.

The total secondary market Treasury bond/bill transacted volumes for 24 July was Rs. 16.97 billion.

In the money market, the OMO department of the Central Bank was seen draining out an amount of Rs. 3.5 billion on an overnight basis by way of a repo auction at a weighted average of 7.90% as the net surplus liquidity in the system dipped to Rs. 10.29 billion yesterday. The overnight call money and repo rates averaged at 8.49% and 8.34% respectively.

Rupee remains steady   

The USD/LKR rate on spot contracts remained mostly unchanged for a second consecutive day to close the day at Rs. 159.50/65.

The total USD/LKR traded volume for 24 July was $ 40.56 million.

Some forward USD/LKR rates that prevailed in the market: 1 month - 160.35/50; 3 months - 161.90/10; 6 months - 164.35/55.