Activity in secondary bond market moderates as sentiment turns bearish

By Wealth Trust Securities 

Moderate activity was witnessed in the secondary bond market once again yesterday, with the sentiment turning bearish. Limited trades were seen consisting of the two liquid 2024 maturities (i.e. 01.01.24 and 01.08.24) within the range of 11.72% to 11.75%. 

Meanwhile, in the secondary bill market, the 182 day bill continued to be quoted at levels of 10.25% to 10.33%.

 The total secondary market Treasury bond transacted volume for 31 May 2017 was Rs. 10.3 billion.

Meanwhile, in money markets, the overnight call money and repo rates increased marginally to average at 8.75% 8.88% respectively as net liquidity in the system reversed back to a deficit of Rs. 4.75 billion yesterday after a lapse of 13 days. 

The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 2 billion on an overnight basis by way of a Repo auction at a weighted average of 7.26%.

 Rupee appreciates 

 The USD/LKR rate on spot contracts were seen appreciating marginally yesterday to close the day at Rs. 152.80/85 against its previous day’s closing levels of Rs. 152.85/90 on the back of exporter conversions.

 The total USD/LKR traded volume for 31 May 2017 was $ 87.50 million.

 Some of the forward USD/LKR rates that prevailed in the market were one month - 153.90/00; three months - 156.10/20 and six months - 158.95/05.