Secondary market bond yields increase in thin trade

By Wealth Trust Securities

The activities in secondary bond markets moderated yesterday as yields were seen increasing for a second consecutive day. 

The liquid maturities of 15.12.21 and 01.01.24 were seen increasing to daily highs of 12.30% and 12.65% respectively against its previous day’s closing levels of 12.20/30 and 12.50/60. In addition, two way quotes on the rest of the yield curve were seen increasing and widening as well.

The total secondary market Treasury bond transacted volume for 7 April was at Rs.9.63 billion

Meanwhile, the net surplus liquidity in the system continued to decrease to record Rs.7.83 billion yesterday as no overnight repo auction was conducted by the Open Market Operations (OMO) department of Central Bank. Call money and repo rates remained steady average at 8.75% each.

Rupee dips further

 In Forex markets, the two weeks forward contracts were seen dipping marginally to close the day at Rs.153.25/40 yesterday against its previous day’s closing of Rs.153.00/10 on the back of importer demand.

The total USD/LKR traded volume for 7 April was $ 60.50 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 153.70/00; three months – 155.60/90; and six months – 159.20/50.