Activity dries up in secondary bond markets ahead of Budget speech

By Wealth Trust Securities

Activity in secondary bond markets dried up yesterday ahead of the 2016 Budget speech (Second Reading of the Appropriation Bill) due today. 

However, yields were seen edging up marginally in thin trade mainly on the 15 September 2019, 1 May 2020, 1 August 2021 and 1 September 2023 maturities to intraday highs of 8.73%, 8.88%, 9.02% and 9.30% respectively. 

Demand for secondary market Treasury bills continued with February 2016 maturities quoted within the range of 6.22% to 6.28%, April 2016 within 6.30% to 6.35% and May 2016 within 6.35% to 6.40%. In money markets, overnight call money and repo rates decreased marginally to average 6.30% and 6.04% respectively as surplus liquidity stood at high of Rs.138.44 billion.

Rupee stable

The rupee rate on spot contracts remained steady at Rs. 142.35/50 throughout the day as activity dried yesterday. The total USD/LKR traded volume for 18 November was $ 88.75 million. Some of the forward USD/LKR rates that prevailed in the market were: one month – 142.65/75; three months – 143.35/45; and six months – 144.70/85.