Activity increases in secondary bond markets as yields remain up
Friday, 21 November 2014 01:35
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By Wealth Trust Securities
Selling interest mainly on the longer end of the yield curve saw bond yields increase further yesterday as activity increased as well. Selling interest on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) saw its yields hit intraday highs of 7.08% and 7.18% respective, the 1 July 2019 to 7.25%, the 1 May 2021 to 7.65%, and the 1 July 2022 to 7.97% and the 1 January 2024 to 8.05%.
Meanwhile, on the shorter end of the curve, 2016 maturities were seen changing hands within the range of 6.35% to 6.50% and 2017 within 6.80% to 7.00% as well. In secondary bill markets, the 364 day bill continued to be quoted at levels of 5.97% to 6.02%.
The Open Market Operations (OMO) department of Central Bank was seen conducting two term repo auctions yesterday for durations of 56 days and 77 days at where a total amount of Rs. 34 billion was drained from the system at weighted averages of 6.02% and 6.03% respectively, valued today. Overnight call money and repo rates averaged at 6.00% and 5.50% respectively as surplus liquidity stood at Rs. 3.66 billion yesterday.
Rupee remains mostly unchanged
In Forex markets, the dollar/rupee (USD/LKR) rate on spot next contracts as well as spot next-next contracts remained mostly unchanged to close the day at Rs. 130.15/25 and Rs. 131.20/40 respectively. The total USD/LKR traded volume for 19 November was at $ 25.7 million.
Some of the forward dollar rates that prevailed in the market were: one month – 131.69; three months – 132.75; and six months – 133.98.
