Downward trend persists in secondary bond markets

By Wealth Trust Securities

The downward trend in secondary market bond yields persisted yesterday as well on the back of moderate volumes changing hands. 

Buying interest on the liquid  of 1 June 2018, 15 September 2019, 1 June 2020 and 15 March 2025 saw its yields dip to intraday lows of 7.91%, 8.16%, 8.40% and 8.95% respectively against its opening levels of 7.92/95, 8.20/25, 8.43/46 and 8.97/05.

Meanwhile in secondary bill markets, continued demand saw August and November 2015 bills change hands within the range 6.00% to 6.05% and 6.12% to 6.15% respectively. 

In money markets, overnight call money and repo rates remained mostly unchanged to average 6.13% and 6.03% respectively as surplus liquidity increased further to Rs. 130.69 billion yesterday. 

Rupee appreciates on forward contracts

 The dollar/rupee rate on its active one month and two month forward contracts was seen appreciating yesterday to close the day at Rs. 134.70/80 and Rs. 135.20/40 respectively against its previously day’s closing levels of Rs. 134.80/00 and Rs. 135.70/80 on the back of export conversions. 

The total USD/LKR traded volume for 6 May was at $ 19.50 million. Given are some forward dollar rates that prevailed in the market: three months – 135.80; six months – 137.47.