Secondary market bond yields increase

Foreign holding in rupee bonds increases once again

By Wealth Trust Securities

 The secondary market bond yields increased yesterday, with selling interest consisting of mainly the eight and 10 year maturities of 01.01.24 and 01.06.26, at highs 12.40% and 12.50% respectively. This was in comparison to its opening levels of 12.15/25 and 12.35/40.

Similarly, the yields of the 15.10.21 and 01.10.22 maturities too, increased to levels of 11.85/95 and 11.97/10 respectively, while on the shorter end of the yield curve the 15.10.18 maturity was seen increasing to levels of 11.40/50 as against its previous day’s closing levels of 11.30/35. 

Meanwhile the foreign holding in rupee bonds was seen increasing once again to record an inflow of Rs.8.16 billion for the week ending 8 June against its previous week’s outflow of Rs.11.05 billion.

Meanwhile in money markets, the Open Market Operations (OMO) Department of Central Bank injected an amount for Rs.15 billion at a weighted average rate of 7.99% as the net deficit in the market stood at Rs.7.91. The overnight call money and repo rates remained mostly unchanged to average out at 8.18% and 8.05% respectively.

Rupee remains mostly unchanged  

In Forex markets, the USD/LKR rate on spot as well as spot next contracts remained mostly unchanged to close the day at Rs.144.70/85 and Rs.144.75/85 respectively, subsequent to appreciating to highs of Rs.144.65 and Rs.144.72. The total USD/LKR traded volume for 10 June was $ 57.50 million. Given are some forward USD/LKR rates that prevailed in the market: one month – 145.45/55; three months – 147.10/30; six months – 149.50/70.