Upward trend in secondary bond market yields continues

By Wealth Trust Securities

The upward trend in secondary bond market yields persisted yesterday, with the liquid maturity of 15.09.19 hitting intraday highs of 11.62% against its previous day’s closing level of 11.52/65. 

However, activity came to a halt towards the latter part of the day with the Budget reading. 

Meanwhile, in secondary bill markets, the April, May, August and September 2017 maturities changed hands at levels of 9.58% to 9.60%, 9.65%, 10.06% to 10.12% and 10.15% to 10.20% respectively. 

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.44% and 8.69% respectively as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 45.68 billion on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.49%. The net deficit in the system stood at Rs. 47.15 billion. 

 Rupee appreciates marginally     

 The USD/LKR rate on one week forward contracts appreciated marginally to close the day at Rs. 147.95/10 against its previous day’s closing levels of Rs. 148.10/20.

The total USD/LKR traded volume for 9 November 2016 was $ 59.23 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 148.60/70; three months - 150.35/45 and six months - 152.90/00.