Sentiment in secondary bond markets remain negative

By Wealth Trust Securities

The upward trend in secondary market bond yields continued yesterday as well, on the back of continued selling interest mainly on the mid-term maturities of the yield curve. The liquid maturity of 01.08.26 continued to change hands within the range of 12.80% to 12.88% while yields on the 01.09.23 and 01.08.24 maturities were seen increasing to highs of 12.86% and 12.88% respectively from an opening lows of 11.55% and 12.80%. 

Meanwhile in money markets, overnight call money and repo rates remained mostly unchanged to average 8.44% and 8.66% respectively as the Open Market Operations (OMO) department of Central Bank injected an amount of Rs.49.86 b on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.49%. The net deficit in the market stood at Rs.56.11 billion.

Rupee closes mostly unchanged

 The USD/LKR rate on spot next contracts closed the day mostly unchanged at Rs.148.60/70. The total USD/LKR traded volume for 16 November 2016 was $ 41.50 m.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 149.30/45; 3 months - 151.20/30 and 6 months - 153.75/85.