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Wednesday, 9 November 2016 00:03 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Activity in the secondary bond market moderated yesterday as yields were seen increasing against their previous day’s closing levels.
The liquid two ten year maturities of 01.06.2026 and 01.08.2026 were seen crossing the 12.00% level once again, since 14 October 2016, to hit intraday highs of 12.03% and 12.02% against its days opening lows of 11.98% and 12.00%.
In addition the 15.11.18, 01.05.20 and 15.05.30 maturities were seen changing hands within the range of 11.08% to 11.11%, 11.68% to 11.70% and 12.15% respectively as well.
In the secondary bill market, April 2017 bills were seen changing hands within the range of 9.58% to 9.60%. This was ahead of today’s weekly Treasury bill auction where a total amount of Rs. 28 billion will be on offer consisting of Rs. 6 billion on the 91 day, Rs. 10 billion on the 182 day and Rs. 12 billion on the 364 day maturities respectively. At last week’s auction, weighted averages dipped by 14 and 01 basis points respectively on the 364 day and 182 day maturities to 10.10% and 9.47% while the 91 day maturity remained unchanged at 8.60%.
In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.44% and 8.69% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 42.00 billion on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.49%. The net deficit in the system stood at Rs. 39.78 billion.
The USD/LKR rate on the one week forward contracts appreciated yesterday to close the day at Rs. 148.05/15 against its previous day’s closing levels of Rs. 148.20/25 on the back of continued export conversions. The total USD/LKR traded volume for 7 November 2016 was $ 87.50 million. Some of the forward USD/LKR rates that prevailed in the market were one month - 148.80/95; three months - 150.50/75 and six months - 152.95/25.
