Activity in secondary bond markets dry up as yields edge up marginally
Tuesday, 4 March 2014 00:54
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By Wealth Trust Securities
Activity in secondary bond markets dried up yesterday following the 1 March 2014 bond maturity of Rs. 100.3 billion with the liquid two 2018 maturities (i.e. 01.04.2018 and 15.08.2018) closing the day marginally higher at levels of 8.80/85 and 8.90/95 respectively against its previous weeks closing levels of 8.76/80 and 8.83/88.
In addition the 15.01.2019 and 01.05.2021 maturities were seen quoted at levels of 8.95/02 and 9.90/95 respectively as well. In secondary bill markets, the 364-day bill continued to be quote within the range of 7.03% to 7.10%.
Overnight call money and repo rates decreased marginally to average 6.93% and 6.38% respectively despite surplus liquidity decreasing to Rs. 39.07 billion yesterday against market expectations of an increase in line with 1 March 2014 bond maturity of Rs. 100.3 billion.
The Open Market Operations (OMO) department of the Central Bank was seen mopping up an amount of Rs. 21 billion on a four day basis at a weighted average of 6.64% by way of a repo auction while a further amount of Rs. 18.07 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%.
Rupee dips marginally
The dollar/rupee rate was seen trading at levels of Rs. 130.60 to Rs. 130.65 throughout the day in comparison to its Friday’s closing levels of Rs. 130.50/60 at the start of a fresh month. The total USD/LKR traded volume for the previous day (28 February 2014) stood at $ 64.15 million.
Some of the forward dollar rates that prevailed in the market were 1-Month: Rs. 131.19, 3-Months: Rs. 132.19 and 6-Months: Rs. 133.61.
