Secondary market bond yields continue to decline

By Wealth Trust Securities

The continued buying interest on the shorter leg of the yield curve saw secondary market bond yields dip further yesterday. Buying interest on the two-year maturity of 15.05.2017 and the three-year maturity of 01.06.2018 saw its yields dip to intraday lows 7.00% and 7.77% respectively from its day’s opening highs of 7.05% and 7.83%. 

In addition, a limited amount of activity was witnessed on the liquid maturities of 15.09.2019, 01.05.2020, 01.08.2021 and 01.09.2023 within the range of 8.08% to 8.12%, 8.30% to 8.33%, 8.45% to 8.48% and 8.70% to 8.73% respectively. 

Meanwhile, in money markets, overnight call money and repo rates remained steady to average 6.13% and 6.12% respectively as surplus liquidity remained high at Rs. 123.10 billion yesterday.

Rupee closes steady

The rupee on one-month and two-month forward contracts was seen closing the day mostly unchanged at levels of Rs. 134.70/80 and Rs. 135.55/60 respectively as markets were at equilibrium. The total USD/LKR traded volume for the previous day (13-05-15) stood at $ 32.95 million. 

Some of the forward dollar rates that prevailed in the market were 3 months - 136.10/25 and 6 months - 137.85/05.