Secondary bond market activity dries up as yields remain mostly unchanged
Friday, 12 September 2014 01:24
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By Wealth Trust Securities
Activity in secondary bond markets dried up yesterday as yields remained mostly unchanged throughout the day with two-way quotes mainly seen on the liquid maturities of 1 April 2018, 15 August 2018 and 1 July 2019 at levels of 7.17/25, 7.25/30 and 7.45/53 respectively.
In addition the eight year maturity of 01.07.2022 was quoted within the range of 8.08% to 8.15% while the two 2029 (1 January 2019 and 1 May 2029) maturities were seen changing hands within the range of 9.08% to 9.10%.
In secondary bill markets, October 2014 bills were quoted within the range of 6.25% to 6.30% and February 2015 bills within the range of 6.28% to 6.35%.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.70% and 6.52% respectively as overall surplus liquidity stood at Rs.32.64 billion yesterday. The total amount was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no cash valued auctions under its Open Market Operations (OMO) were conducted yesterday.
However, the OMO department was seen mopping up an amount of Rs. 46.30 billion via two term repo auctions at yields of 6.48% for 56 days and 6.49% for 77 days, valued today.
Spot contracts remain inactive as spot
next contracts dip
In Forex markets, the USD/LKR rate on spot next contracts was seen depreciating further yesterday to close the day at levels Rs. 130.32/35 against its previous day’s closing levels of Rs. 130.29/32 on the back of continued importer demand as activity on spot contracts moderated. The total USD/LKR traded volume for 10 September was at $ 37.90 million. Some of the forward dollar rates that prevailed in the market were: one month – 130.77; three months – 131.49; and six months – 132.57.
