Secondary market bond yields decrease further

By Wealth Trust Securities

The secondary bond market witnessed a further dip in yields yesterday, with considerable  volumes of the liquid maturities of 15.12.21, 15.05.23, 01.08.24 and 01.08.26 changing hands to hit intraday lows of 10.60%, 10.74%, 10.75% and 10.82% respectively against the previous day’s closing of  10.70/73, 10.81/84, 10.83/87 and 10.95/98. Furthermore, the 15.01.19 maturity too, traded within the range of 10.02% to 10.11%. 

The total secondary market Treasury bond transacted volume for 19 July was Rs.15.03 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka, drained out an amount of Rs.22.94 billion on an overnight basis at a weighted average of 7.31% by way of a repo auction, as the net surplus liquidity stood at Rs.31.32 billion. 

Furthermore, excess liquidity was also mopped up by way of an outright Treasury bills auction, where an amount of Rs.9.5 billion was drained out at a weighted average of 8.48% for a period 21 days and 8.74% for a period of 28 days, valued today.

 The overnight call money and repo rates averaged at 8.68% and 8.78% respectively.

Rupee remains 

mostly unchanged

In the Forex market, the USD/LKR rate on spot contracts remained mostly unchanged for a second consecutive day to close at Rs.153.68/75.

The total USD/LKR traded volume for 19 July was $ 77.57 million.

Some of the forward USD/LKR rates that prevailed in the market were: one month – 154.70/80; three months – 156.70/80; and six months – 159.60/70.