Secondary market bond yields mostly unchanged in thin trade

Tuesday, 17 November 2015 00:05 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The yields in secondary market bonds remained mostly unchanged yesterday as activity dried up considerably. Limited amount of activity was seen on the long end of the curve, with the 1 September 2028 and the 15 March 2035 maturities changing hands within DFT-10 the range of 9.30% to 9.35% and 9.75% to 9.85% respectively.

In money markets, liquidity remained high at Rs.143.87 billion yesterday as overnight call money and repo rates remained steady to average 6.31% and 6.07% respectively.

Rupee dips further

The dollar/ rupee rate on spot contracts depreciated further yesterday to close the day at Rs. 142.20/30 in comparison to its previous day’s closing levels of Rs. 142.00/20 on the back of importer demand. The total USD/LKR traded volume for 13 November was $ 89.25 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 142.50/65; three months – 143.55/70 and six months – 144.65/75.

Rupee near record low on importer dollar demand

REUTERS: The Sri Lankan rupee ended weaker on Monday, not far from an all-time low hit in the previous session, on importer dollar demand, while a private bank’s greenback sales prevented further fall in the local currency, dealers said.

The rupee ended down at 142.20/30 per dollar from Friday’s close of 142.00/05.

The currency fell 0.25 percent on Friday to a record low of 142.25, though the central bank prevented it from falling further by restricting trades below 142.00 per dollar, dealers said.

Dealers said the central bank on Monday prevented the currency from falling further by restricting trades below 142.20 per dollar. Central bank officials were not available for comments.

“The rupee is weaker on lack of supply. Exporters are reluctant to sell as they expect the currency to weaken further and they are waiting to see what the central bank’s move is,” said a currency dealer asking not to be named.

Dealers said importers have been booking forwards as they are not sure of the budget while exporters are quietly selling in low volumes on expectations the currency will trade around the current levels until some clarity emerges from the 2016 budget.

Finance Minister Ravi Karunanayake will present the 2016 budget in parliament on Friday. He has said the budget will be “capital oriented”.

Commercial banks parked 143.87 billion rupees ($1.01 billion) of surplus liquidity on Monday, using the central bank’s deposit facility at 6 percent, official data showed.