Secondary market bond yields edge up marginally

By Wealth Trust Securities

With the start of a fresh month, the secondary market bond yields edged up marginally, mostly on the back of profit taking. 

Selling interest of the liquid maturities 01.03.21, 01.08.24 and 01.06.26 resulted in their yields edging up to intraday highs of 12.00%, 12.45% and 12.60% respectively. This was against the day’s opening lows of 11.85%, 12.35% and 12.55%.  

Furthermore, activity was also witnessed around the 15.09.19 and 01.08.26 maturities within the range of 11.60%-11.65% and 12.65%-12.70%.

Overnight call money and repo rates averaged at 8.40% and 8.71% respectively, and the net liquidity shortfall in the system stood at Rs. 50.43 billion. The Open Market Operations (OMO) department of the Central Bank injected an amount of Rs. 44.18 billion on an overnight basis by way of a Reverse Repo auction at a WAvg of 8.32%. 

Rupee depreciates marginally  

 The one week Rupee forward contracts in the Forex market were seen depreciating marginally yesterday to close the day at Rs. 146.20/35 against its previous day’s closing of Rs. 146.15/25 on the back of importer demand.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 147.00/20; 3 months - 148.45/65 and 6 months - 150.85/00.