Secondary market bond yields increase along the yield curve

By Wealth Trust Securities

The secondary bond market became active yesterday with yields increasing all along the yield curve, mainly on the belly end. 

Selling interest consisting of the 01.01.24, the two 2026s (i.e. 01.06.26 and 01.08.26) and the 15.05.30 saw its yields increase to intraday highs of 13.30%, 13.35% each and 13.45% respectively, when compared against opening lows of 13.26%, 13.30% each and 13.33%. Furthermore, the 01.04.18, 01.05.20 and 15.12.21 maturities were seen hitting highs of 11.43%, 13.00% and 13.13% as well.

The total secondary market Treasury bond transacted volume for 15 March 2017 was Rs. 0.6 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

In money markets, the overnight call money and repo rates averaged 8.50% and 8.57% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka infused an amount of Rs. 19 billion at a weighted average of 8.50%, by way of an overnight reverse repo auction. The net liquidity shortfall in the system stood at Rs. 23.89 billion. 

Activity in dollar rupee market moderates

The rupee on the active two weeks and one month forward contracts were seen closing the day at levels of Rs. 153.05/15 and Rs. 153.70/85 respectively against its previous day’s closing levels of Rs. 153.00/35 and Rs. 153.75/90 as activity moderates.

 The total USD/LKR traded volume for 15 March 2017 was $ 31.67 million.

 Given below are some forward USD/LKR rates that prevailed in the market.