Seasonal mood keeps secondary bond markets rather dull
Friday, 27 December 2013 00:00
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The seasonal mood in secondary bond markets saw activity drying up yesterday as yields were seen increasing marginally in thin trade, according to Wealth Trust Securities.
It said a limited amount of activity was witnessed on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) as it yields closed the day at levels of 9.70/72 and 9.75/80 subsequent to dropping to intraday low of 9.60% and 9.68% and increasing to a high 9.70% and 9.75% respectively.
Meanwhile in secondary bills markets the 364 day bill continued to change hands within the range of 8.00% to 8.10%.
The surplus liquidity in money markets stood at Rs. 14.77 b yesterday as an amount of Rs. 3.95 b was drained out by way of an overnight Repo auction conducted by the Open Market Operations (OMO) department of Central Bank at a WAvg of 6.98%% while a further Rs. 10.82 b was deposited at its window rate of 6.50%.
Furthermore, the Open Market Operations (OMO) department of Central Bank was seen carrying out two outright auctions and two term repo auction yesterday, totalling Rs. 27 b for durations of 49 days, 56 days, 35 days and 63 days respectively in order to mop up liquidity.
However, only an amount of Rs. 0.4 b was drained out at a weighted average rate of 7.45% on the 63 day term repo maturity value dated today as two outright auctions did not receive any bids and 15 day term repo was rejected. Overnight call money and repo rates remained steady to average 7.70% and 7.01% respectively.
Meanwhile in USD/LKR markets, the rupee remained mostly unchanged to close the day at Rs. 130.70/75. The total USD/LKR volume for the previous day (24 December) stood at US$ 104.90 million. Some of the forward dollar rates that prevailed in the market were one month – 131.13; three months – 132.03; and six months – 133.53.
