Secondary bond market rally continues

The secondary bond market yesterday started off on a strong note, with a rally that saw aggressive buying, pushing yields to fresh lows. Sizeable volumes transacted. 
According to Wealth Trust Securities, this was against the backdrop of positive remarks shared by President Ranil Wickremesinghe while presenting the government’s policy statement in Parliament. 
However, subsequent to the release of the Treasury bill auction results, some profit-taking pressure saw yields edge up slightly. 
Despite this, the market closing two-way quotes across tenures were significantly lower than the previous day, Wealth Trust Securities said.

Trading continued to be centred on short to medium tenures. The yields on the 2026 tenures were seen dropping to touch intraday lows of 11.00 percent, as against its intraday highs of 11.60 percent. 2028 tenures were seen hitting intraday lows of 12.20 percent, as against intraday highs of 12.45 percent. Additionally, trades were observed on the maturities of 15.01.25, the two 27s (01.05.27 and 15.09.27), 15.07.29, 15.05.30 and 01.07.32, at levels of 11.00 percent, 12.22 percent to 12.15 percent, 12.62 percent, 13.00 percent to 12.60 percent and 12.95 percent to 12.77 percent, respectively.