Rates remained steady ahead of inflation announcement

Secondary market bond trading activity dried up yesterday as yields remained steady during the day with active two way quotes were seen only on the 5 year and 7 year maturities within the levels of 13.55% - 13.70% and 13.75% - 13.85% respectively. Furthermore selling pressure on secondary market Treasury bills remained throughout the day as market eagerly awaited Inflation figures due to be announced today.

Meanwhile in money markets, overnight call money and repo rates remained steady to average 10.54% and 9.656% respectively as surplus liquidity increased marginally to Rs 0.47 Bn yesterday. An amount of Rs.1.20 billion was deposited at its repo window rate of 7.75% while Rs.0.73 billion was accessed from its discount window rate of 9.75% as Central bank refrained from conducting any overnight OMO auctions for a second consecutive day as well.

In Forex markets, the rupee depreciated once again in early hours of trade yesterday to an intraday low of Rs 130.20 on the back of continued importer demand. However selling interest at these levels towards the latter part of the day on spot contracts saw the greenback holding at these levels to close the day within the range of Rs 130.15 – Rs.130.25. The total USD/LKR traded volume for the previous day (26-10-12) stood at US $ 87.45 million. (Source: Wealth Trust Securities Ltd)