Secondary market bond yields decrease marginally

By Wealth Trust Securities

Continued foreign buying interest coupled with fresh local buying led to a decrease in secondary market bond yields. 

Buying interest of the two 2021 maturities (i.e. 01.08.21 and 15.12.21) and the two 2024 maturities (i.e. 01.01.24 and 01.08.24) resulted in yields dipping to intraday lows of  11.30%, 11.35%, 11.48% and 11.50% respectively against its previous day’s closing levels of 11.35/40, 11.38/42, 11.50/55 and 11.50/58. Furthermore, limited activity was witnessed with the 15.01.19 and 01.08.26 maturities at levels of 10.73% and 11.52% to 11.55% respectively.

The total secondary market Treasury bond transacted volume for 16 June 2017 was Rs. 8.49 billion.

Meanwhile, in money markets, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 15.56 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 8.75% as the net liquidity shortfall in the system stood to Rs. 24.81 billion. The overnight call money and repo rates averaged 8.75% and 8.80% respectively.

 Rupee losses 

 In Forex markets, the rupee on spot next contracts were seen losing ground yesterday to close the day at Rs.153.18/25 against Friday’s closing levels of Rs.153.15/20, while spot contracts were seen quoted at levels of Rs. 153.15/20 for the first time since 12 May 2017.

 The total USD/LKR traded volume for 16 June was $ 81.20 million.