Secondary market bond yields broadly steady ahead of bond auctions

By Wealth Trust Securities

The secondary bond market was seen trading within a narrow range yesterday mainly on the liquid maturities of 1 September 2023, 15 May 2030 and 1 January 2041 ahead of three Treasury bond auctions due on Monday 29 February. 

The above three maturities were seen changing hands within the range of 11.60% to 11.65%, 11.96% to 12.00% and 12.00% to 12.01% respectively on the back of moderate volumes changing hands. Furthermore, two way quotes on the rest of the yield curve was seen narrowing down as well. 

Meanwhile in money markets, the overnight call money and repo rates averaged 7.51% and 7.06% respectively as surplus liquidity stood at Rs. 33.22 billion yesterday

Rupee depreciates further 

The active one week forward contract was seen dipping further yesterday to Rs.144.80/00 against its previous day’s closing of Rs.144.65/70 in Forex markets on the back of continued importer demand. The total USD/LKR traded volume for 24 February was $ 38.94 million. 

Some of the forward USD/LKR rates that prevailed in the market were: one month – 145.25/40; three months – 146.75/85; and six months – 148.75/85.