Secondary market bond yields edge up in moderate trade

By Wealth Trust Securities

The yields in secondary market bonds were seen increasing yesterday on the back of selling interest, mainly on the belly end of the yield curve. 

Yields on the liquid maturities of 15 September 2019, 1 May 2020, 1 August 2021, 1 July 2022 and 1 September 2023 was seen hitting intraday highs 8.55%, 8.78%, 8.90%, 9.20% and 9.10% respectively against its days opening lows of 8.50%, 8.65%, 8.82% and 9.05% each. 

In addition, a limited amount of activity was witnessed on the 01.01.24 maturity within the range of 9.30% to 9.40% while on the short end of the curve, early 2017 maturities were seen changing hands within the range of 7.10% to 7.20%. 

However, continued buying interest in secondary market bills saw yields drop with durations centering the 182 day and 364 day maturities continuing to change hands within the range of 6.40% to 6.45% and 6.85% to 6.95% respectively. 

In money markets, liquidity remained high at Rs. 106.64 billion yesterday as overnight call money and repo rates remained steady to average 6.31% and 6.08% respectively. 

Rupee depreciates once gain 

The dollar/rupee rate on spot contracts depreciated once again yesterday to close the day at Rs. 142.00/10 in comparison to its previous day’s closing levels of Rs. 141.95/00 on the back of importer demand. 

The total USD/LKR traded volume for 11 November was $ 77.25 million. Some of the forward USD/LKR rates that prevailed in the market were: one month – 142.35/50; three months – 143.25/35; and six months – 144.65/75.