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Wednesday, 2 August 2017 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market yields remained broadly unchanged yesterday, with moderate volumes of trades taking place within a narrow band.
Buying interest of the three 2021s (i.e. 01.03.21, 01.05.21 and 15.12.21) and 01.08.26 resulted in their yields dipping to intraday lows of 10.42%, 10.48%,10.44% and 10.60% respectively when compared against the opening highs of 10.45%, 10.51%, 10.48% and 10.66%.
Furthermore, the 15.05.23, 15.06.27 and 15.05.30 maturities were seen changing hands within a tight range of 10.54% to 10.58%, 10.65% to 10.66% and 11.00% to 11.10% respectively.
Today’s bill auction will have on offer a total amount of Rs. 31 billion consisting of Rs. 15 billion of the 91 day, Rs. 14.5 billion of the 182 day and Rs. 15 billion of the 364 day maturities. At last week’s auction, the weighted averages decreased sharply to 9.44%, 9.71% and 9.99% on the 91 day, 182 day and 364 day maturities. In the secondary bill market, January 2018 bills were seen trading at levels of 9.40% to 9.42% and July 2018 bills at 9.75%.
The total secondary market Treasury bond transacted volume for 31 July was Rs. 9.98 billion.
In the money market, overnight call money and repo rates remained mostly unchanged to average 8.74% and 8.75% respectively as the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 3.8 billion at a weighted average of 7.40%, by way of an overnight repo auction. The net surplus liquidity in the system increased to Rs.20.16 billion.
The USD/LKR rate on spot contracts was seen appreciating further yesterday to close the day at Rs. 153.45/53 against its previous day’s closing of Rs. 153.50/55 on exporter dollar conversions.
The total USD/LKR traded volume for 31 July was $ 36.25 million.
Some of the forward USD/LKR rates that prevailed in the market were: one month – 154.45/65; three months – 156.40/60; six months – 159.30/6.
