Downward trend in secondary market bond yields persists
Friday, 4 October 2013 02:16
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By Wealth Trust Securities
The downward trend in secondary market bond and bills continued yesterday as well with activity remaining very high. Once again, activity in the bond market continued to surround four maturities, mainly the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018), the three and a quarter year maturity and the two year maturity.
On the five years, yields were seen hitting an intraday low of 11.63% and 11.65% respectively against its opening of 11.68% and 11.70%, on the three and a quarter year, a low of 11.43% against a high of 11.54% while the two year was traded within a low of 10.71% to a high of 10.83%. In addition, demand for secondary market bills persisted with, January 2014 bills changing hands within 8.85% to 9.00%, May 2014 within 9.80% to 9.90%, August 2014 within 10.25% to 10.35 while the 364 day bill was seen been quoted at levels 0f 10.42/48.
Meanwhile in money markets, surplus liquidity dipped to Rs. 23.49 billion yesterday as overnight call money and repo rates remained steady to average 8.42% and 7.98% respectively. Central Bank refrained from conducting an overnight repo auction for an ninth consecutive day under its Open Market Operations (OMO) while Rs. 10.29 b was seen been deposited at CBSL’s Repo window of 7.00%. However the OMO department drained out Rs. 13.20 billion for a period of seven days at a WAvg of 7.97% by way of a seven day repo auction.
Rupee remains steady
The rupee was seen closing the day unchanged at Rs. 131.40/45 yesterday subsequent to gaining to Rs. 131.20 on the back of importer demand. The total USD/LKR traded volume for the previous day (2 October 2013) stood at US$ 42.70 million.
Some of the forward dollar rates that prevailed in the market were one month – 132.29; three months – 133.99; and six months – 136.52.
