Tuesday, 22 October 2013 00:36
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By Wealth Trust Securities
The positive momentum in secondary bond markets continued yesterday as well, with the liquid two maturities of 1 January 2017 and 1 April 2018 closing the day at levels of 10.82/86 and 11.06/08 respectively subsequent to its morning intraday highs of 10.90% and 11.10% and evening lows of 10.85% and 11.08%.
In addition, buying interest on the illiquid five year maturities of 1 February 2018, 1 June 2018 and 15 September 2018 saw considerable volumes change hands within the range of 11.20% to 11.25% once again while the two year maturities were seen changing hands within the range of 10.30% to 10.40%.
Secondary market bills continued to be in demand, with January 2014 bills trading within the range of 8.25% to 8.30%, May 2014 within 9.25% to 9.35%, August 2014 within 9.80% to 9.85% and durations close to the 364 day bill within 10.05% to 10.10%.
Overnight call money and repo rates increased marginally to average 7.85% and 7.11% respectively as surplus liquidity in money markets dipped to Rs. 20.80 b yesterday. Central Bank continued to mop up an amount of Rs. 16.25 billion through its Open Market Operations at a WAvg yield of 7.45% for a period of seven days while a further amount of Rs. 4.55 b was deposited at its Repo rate of 6.50%.
Rupee gains for a second consecutive day
In Forex markets, the rupee continued to appreciate for a second consecutive day to close the day at 131.93/98 in comparison to its previous weeks closing of 132.00/05. The total USD/LKR traded volume for the previous day (17 October 2013) stood at US $ 55.93 million.
Some of the forward dollar rates that prevailed in the market were one month – 131.81; three months – 133.41; and six months – 135.91.
