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Friday, 11 August 2017 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market remained active yesterday as yields increased across the board, backed by continuous selling interest.
The yields of the liquid maturities consisting of the three 2021’s (i.e. 01.03.21, 01.08.21 and 15.12.21), 15.05.23, 01.08.24, 01.09.28 and 15.05.30 hit intraday highs of 10.44%, 10.50%, 10.35%, 10.80%, 10.72%, 10.90% and 11.01% respectively against its previous day’s closing levels of 10.32/38, 10.40/43, 10.23/28, 10.60/70, 10.55/65, 10.80/95 and 10.93/05.
Furthermore, the 2018 and 2019 maturities were seen changing hands within the range of 9.37% to 9.60% and 9.75% to 9.82%.
The total secondary market Treasury bond transacted volume for 9 August 2017 was Rs. 17.44 billion.
Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.
In money markets, the OMO Department (Open Market Operations) of the Central Bank of Sri Lanka, conducted two auctions for the outright sale of Treasury bills, consisting of 42 days and 35 days, value today. However, only an amount of Rs. 0.5 billion was accepted as against the total offered amount of Rs. 10.00 billion, of the 42 day maturity at a weighted average yield of 8.50% whilst all bids received for the 35 day maturity were rejected.
The overnight call money and repo rates decreased marginally to average 8.63% and 8.75% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 2.36 billion on an overnight basis at a weighted average of 7.31%. The net surplus liquidity in the system increased to Rs. 31.40 billion yesterday.
In the Forex market, the USD/LKR rate on spot contracts was seen appreciating marginally to close the day at Rs. 153.10/20 against the previous day’s closing level of Rs. 153.20/30 on the back of exporter dollar sales.
The total USD/LKR traded volume for 9 August 2017 was $ 125.20 million.
Given below are some forward USD/LKR rates that prevailed in the market.
1 Month - 153.75/85
3 Months - 155.40/55
6 Months - 158.00/20
