Trading continues within a narrow band

By Wealth Trust Securities 

The secondary bond market yields remained broadly unchanged yesterday as trading continued within a narrow band on the back of moderate volumes changing hands. 

Buying interest on the 15.09.19 and 01.03.21 maturities saw its yields dip to intraday lows of 11.45% and 11.86% respectively against its day’s opening highs of 11.53% and 11.90%. On the belly end of the curve, the 01.09.23, 01.01.24 and the two 2026 maturities (01.06.26 and 01.08.26) were seen changing hands within a tight range of 12.13% to 12.15%, 12.15% to 12.17% and 12.45% to 12.50% respectively. 

In the secondary bill market, January 2017 bills were seen changing hands at levels of 9.65% to 9.70% while August 2017 bills were quoted at levels of 10.65/68. 

Meanwhile in money markets, overnight call money and repo rates remained steady to average 8.40% and 8.53% respectively as the Open Market Operations (OMO) Department of Central Bank injected an amount of Rs. 45.00 billion at a weighted average of 8.32% on an overnight basis yesterday. The net liquidity shortfall increased to Rs.48.38 billion.

Rupee appreciates 

The Rupee on the one week forward contracts were seen appreciating yesterday to close the day at Rs.145.65/70 against its previous day’s closing levels of Rs.145.70/85 while the spot and spot next contacts strengthened to Rs.145.50/53 and 145.50/55 respectively. The cash and tom contacts were seen trading at highs of Rs.145.42 and Rs.145.44 respectively as well. The total USD/LKR traded volume for 9 August was $ 69.50 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 146.35/45; three months – 148.00/20; six months – 150.40/60.