Downward trend continues in secondary bond markets
Driven by the outcome of Inflation for the month of August and selected buying interest on long tenure bond maturities, secondary market bond yields were seen dipping for a third consecutive day yesterday to begin the month of September on a positive note. Activity was mainly seen on the liquid maturities of 1 April 2018, 1 July 2019, 1 May 2021, 1 July 2022 and 1 January 2024 as its yields were seen dipping to intraday lows of 7.30%, 7.40%, 7.98%, 8.06% and 8.15% respectively against its days opening highs of 7.50%, 7.70%, 8.30%, 8.40% and 8.45%. However, profit taking at these levels curtailed any further downward movement.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.70% and 6.52% as no auctions under Open Market Operations (OMO) were conducted yesterday. The total surplus amount of Rs. 50.53 billion was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50%.
Rupee gains marginally
Meanwhile in Forex markets yesterday, the USD/LKR rate closed the day marginally higher at Rs. 130.17/22 against its previous day’s closing of Rs. 130.20/23. The total USD/LKR traded volumes for 29 August stood at $ 34.35 million. Given below are some forward dollar rates that prevailed in the market: one month Rs. 130.59, three months Rs. 131.19, six months Rs. 132.24.
