Secondary bond market remains active as yields decrease

By Wealth Trust Securities 

The secondary bond market continued to remain active yesterday, as yields decreased across the yield curve. The liquid maturities of 15.12.21, the two 2024’s (i.e. 01.01.24 and 01.08.24) and 01.08.26 hit intraday lows of 11.41%, 11.57%, 11.55% and 11.68% respectively, when compared against the previous day’s closing levels of 11.50/55, 11.67/70, 11.68/71 and 11.70/76.

Furthermore, trades were also witnessed consisting of the 15.11.18, the two 2019’s (i.e. 01.05.19 and 01.07.19) and 01.07.22 maturities, at levels of 10.70%, 10.90%, 10.90% to 11.00% and 11.55% respectively.

Meanwhile in money markets, The Central Bank of Sri Lanka refrained from conducting any auction under its Open Market Operations (OMO) as the net market liquidity stood at a surplus of Rs. 5.25 billion. The overnight call money and repo rates averaged at 8.75% and 8.85% respectively.  

Rupee appreciates

The USD/LKR rate on spot next contracts appreciated yesterday to close the day at Rs. 152.80/85 against its previous day’s closing levels of Rs. 152.88/93, on the back of exporter conversions.

The total USD/LKR traded volume for 6 June was $ 48.50 million.

Some of forward USD/LKR rates that prevailed in the market were one month – 153.83/88; three months – 155.95/05 and six months – 158.85/95.