Secondary market bond yields continue to decline

By Wealth Trust Securities

The bullish sentiment was seen continuing in the secondary bond market yesterday as continued buying interest saw yields decline further. Activity continued to center on the 01.05.20, 01.08.21, 15.03.25, 01.06.26 and the 15.05.30 maturities as its yields dipped to intraday lows of 12.00%, 12.04%, 12.30%, 12.35% and 12.50% respectively against its opening highs of 12.10%, 12.20%, 12.40%, 12.60% and 12.75%. In addition, on the short end of the curve, 2017, 2018 and 2019 maturities were seen changing hands within the range of 10.40% to 10.60%, 11.15% to 11.25% and 11.60% to 11.80% respectively as well.

Meanwhile in money markets yesterday, overnight call money and repo rates remained mostly unchanged as the Open Market Operations (OMO) department of the Central Bank was seen injecting an amount of Rs. 40 billion by way of a reverse repo auction at weighted average rate of 7.97%.

Rupee appreciates further 

Meanwhile in Forex markets, the active spot next contract appreciated further yesterday to close the day at Rs.145.00/10 against its previous day’s closing level of Rs.146.30/50 on the back of selling interest. The total USD/LKR traded volume for the 01st of April 2016 was US $ 42.85 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 145.80/00; 3 Months - 147.50/70 and 6 Months - 149.80/10.