Yields stagnant as activity dries up

By Wealth Trust Securities

Secondary market bond yields remained rather steady yesterday as volumes traded moderated in comparison to the previous day. A limited amount of activity was witnessed on the six year maturity at levels of 12.80% to 12.82% and on the 15 month bond at levels of 12.25% to 12.30%.

Furthermore demand for secondary market bills continued with the 364 day bill and odd dated maturities around that duration been demanded at levels of 12.20% to 12.30%. Expectations for weighted averages to dip further at next week’s Treasury bill auction was seen as the reason for this demand.

Meanwhile, in money markets, overnight call money and repo rates remained unchanged yesterday to average 10.31% and 9.34% respectively as overnight liquidity was at net deficit for a third consecutive day at Rs. 1.1 b. Central Bank refrained from conduction any OMO for a fifth consecutive day.

Rupee gains further by 25 cents

The rupee gained to an intraday high of Rs. 128.30 yesterday subsequent to opening at levels of Rs. 128.70 on the back forward dollar premiums narrowing down further. The total dollar/rupee volume for the previous day (12 December) was US $ 70.87 million.