Activity remains dull ahead of Treasury Bond auctions
Tuesday, 30 December 2014 00:16
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By Wealth Trust Securities
The seasonal mood coupled with the patient policy of most market participants saw activity in secondary bond markets remain very dull yesterday, ahead of today’s Treasury bond auction.
A limited amount of activity was seen on the 1 April 2016 maturity within the range of 6.25% to 6.30%, the 2017 maturities within 6.80% to 6.85% and the 1 July 2022 maturity within 7.78% to 7.82%. Today’s bond auction, the first in three months, will see a total amount of Rs. three billion on offer consisting of Rs. 1.5 billion each on the 1 August 2021 and 1 May 2025 maturities that carry coupons of 11% and 9% respectively.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.00% and 5.51% respectively as surplus liquidity stood at Rs. 45.59 billion yesterday. The Open Market Operations (OMO) department of the Central Bank was seen draining out an amount of Rs 20 billion by way of a three-day term repo auction at a weighted average of 5.91% while an additional Rs. 25.59 billion was deposited at its Standing Deposit Facility.
Rupee dips once again
The USD/LKR rate on spot next contract (Two-day forwards) was seen depreciating marginally to Rs. 132.10 yesterday on the back of import-led demand against its previous day’s closing of Rs. 131.99/00. The total USD/LKR traded volume for 26 December 2014 was $ 72 million.
Some of the forward dollar rates that prevailed in the market were 1 month - 132.72; 3 months -133.70 and 6 months - 134.87.
