Foreign buying interest keeps bond market active

By Wealth Trust Securities

The secondary bond market remained active during the day, with selling interest from local investors during the morning session and buying interest from foreign participants during the afternoon session, with yields moving up and down.

The liquid maturities of 15.09.19, 01.03.21, 01.09.23, 01.08.24 and the two 2026 maturities (i.e. 01.06.26 and 01.08.26) were traded at levels of 11.48% to 11.52%, 11.91% to 11.94%, 12.17% to 12.20%, 12.25% to 12.26% and 12.54% to 12.58% respectively.

In money markets, Overnight call money and repo rates remained broadly steady to average 8.40% and 8.44% as the net liquidity shortfall was seen dipping to a one and half month low of Rs.9.17 billion. An amount of Rs.13 billion was injected on an overnight basis at a weighted average of 8.37% by the OMO Department of the Central Bank.

Rupee remains steady  

The USD/LKR rate on spot, spot next and one week forward contracts remained steady to close the day at Rs.145.50/55, Rs.145.55/60 and Rs.145.70/78 respectively.

The total USD/LKR traded volume for 16 August was $ 57.63 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 146.42/50; three months – 148.00/20; and six months – 150.50/70.