Secondary market bond yields increase on the expectation of a bond auction 

By Wealth Trust Securities

Following the expectation of a Treasury bond auction, the downward trend in the secondary market bond yields which prevailed during the previous week reversed, with the liquid maturities of 01.07.19 and 01.05.21 hitting intraday highs of 11.95% and 12.45% to close the day at 11.92/00 and 12.43/50 respectively. 

This was in comparison with the previous day’s closing levels of 11.90/93 and 12.37/42. Furthermore, the 01.03.21 maturity too was seen trading at levels of 12.30% to 12.35%.

In money markets, overnight call money and repo rates increased marginally to average 8.45% and 8.49% respectively with the net liquidity shortfall increasing to Rs. 1.77 billion. The Central Bank of Sri Lanka refrained from conducting an overnight repo auction for a second consecutive day under its Open Market Operations (OMO). 

Rupee remains 

mostly unchanged

In Forex markets, the USD/LKR rate on active two-week and one-month forward contracts remained mostly unchanged to close the day at Rs. 151.15/25 and Rs. 151.55/70 respectively. 

The total USD/LKR traded volume for 9 February 2017 was $ 76.00 million. 

Some of the forward USD/LKR rates that prevailed in the market were three months - 153.40/55 and

six months - 156.05/15.