Downward trend in secondary market bond yields continue
Tuesday, 11 November 2014 01:16
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The downward trend in secondary market bonds yields continued as yields on the liquid maturities of 1 July 2019 and 1 July 2022 were seen hitting intraday lows of 6.98% and 7.50% respectively against its previous day’s closing levels of 7.06/09 and 7.60/63.
In addition activity was witnessed on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018), the 2021 maturity and the 1 January 2024 maturity within the ranges of 6.80% to 6.85%, 6.88% to 6.95%, 7.30% to 7.35% and 7.70% to 7.75% respectively.
In secondary bill markets, the 182 day bill was quoted at levels of 5.70% to 5.75% while the 364 day bill was quoted at levels of 5.90% to 5.95% as well.
In money markets, the Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 11.28 b by way of a repo auction on a four day basis at a weighted average of 5.80% as the total surplus amount stood at Rs. 25.20 b. Overnight call money and repo rates averaged at 6.00% and 5.36% respectively.
Rupee remains steady
The dollar/rupee (USD/LKR) rate on spot next contracts remained steady within the range of Rs. 130-Rs.131.03 yesterday as spot contracts continued to be inactive. The total USD/LKR traded volume for the 7 November was at $ 40.50 million.
Some of the forward dollar rates that prevailed in the market were: one month – 131.47; three months – 132.33; and six months – 133.55.
