Activity in bond markets at a standstill ahead of presidential election outcome

Friday, 9 January 2015 03:38 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Activity in secondary bond markets came to a complete standstill during the latter part of yesterday as all participants were seen adopting a wait-and-see approach ahead of the outcome of the presidential elections.

A very limited amount of activity was witnessed on the four-year maturity of 1July 2017 within the range of 7.35% to 7.37% as two way quotes were seen widening due to the prevailing uncertainties. In money markets, weighted averages on overnight call money and repo eased yesterday to 6.13% and 5.30% respectively as surplus liquidity stood at Rs. 25.9 billion. The Open Market Operations (OMO) department of Central Bank refrained from conducting any auctions for a third consecutive day. Rupee steady in thin trade In Forex markets the USD/LKR rate on spot next and spot next-next contracts were seen closing the day steady at Rs. 132.65/85 and Rs. 132.75/90 respectively in very thin trade. The total USD/LKR traded volume for 7January was at $ 98.65 million. Given below are some forward dollar rates that prevailed in the market: one month – 133.30; three months – 134.35; six months – 135.55.