Bond markets dull; fuel price cut fails to ignite sentiment
Tuesday, 9 December 2014 00:45
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By Wealth Trust Securities
The week commenced with secondary market bond activity continuing to remain dull as fuel price cuts failed to ignite sentiment. A limited amount of activity was seen on the eight year maturity of 1 July 2022 within the range of 8.20% to 8.25% while the rest of the yield curve remained stagnant. In secondary market bills, May 2015 and June 2015 bills were quoted at levels of 6.76/78 and 6.83/86 respectively.
In money markets, the weighted averages on overnight call money and repo rates decreased further to 5.97% and 5.50% respectively as surplus liquidity stood at Rs. 29.16 billion yesterday. The Open Market Operations (OMO) department of Central Bank was seen draining an amount of Rs. 16.91 billion by way of a four day term repo auction at a weighted average of 5.99%.
Rupee remains steady
The Rupee remained steady yesterday to close the day at Rs. 130.95/97 as markets were at equilibrium. The total USD/LKR traded volume for 5 December was at $ 23.25 million.
Some of the forward dollar rates that prevailed in the market were: one month – 132.38; three months – 133.50; and six months – 134.75.
