Friday, 6 September 2013 03:36
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By Wealth Trust Securities
Secondary bond market yields increased yesterday mainly on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) which reflected the most amount of activity as it was seen hitting an intraday high of 11.90% against its opening levels of 11.82% and 11.85% respectively.
In addition, two-year maturities were seen changing hands within the range of 11.15% to 11.25% once again while the three-and-a-half year maturity changed sides as levels of 11.50%. In secondary bill markets, May 2014 bills were quoted and traded within the range of 10.40% to 10.48% and August 2014 bills within the range of 10.52% to 10.58%.
The weighted average on the overnight repo auction conducted by the Open Market Operations (OMO) department of Central Bank continued to decrease for a fourth consecutive day to record 7.18% yesterday as Rs. 6 b was mopped up while a further amount of Rs. 1 b was mopped up for a period of seven days at a weighted average of 7.95% as surplus liquidity in money markets dipped to Rs. 15.12 b.
Furthermore, CBSL was seen selling down bills amounting to Rs. 1.5 billion with a maturity period of 14 days at a WAvg of 8.05% as well, in an effort to mop up liquidity on a more permanent basis. A further amount of Rs. 11.61 b was seen being deposited at CBSL’s Repo window of 7.00%. This intern helped overnight call money and repo rates to average 8.65% and 8.11% respectively.
Spot next contracts
remain steady
The rupee on spot next contracts remained steady at Rs. 133.05-Rs. 133.15 for a fourth consecutive day yesterday. However spot next/next contracts (Four working days ahead) was seen edging lower to close the day at levels of Rs. 133.15/18. The total USD/LKR traded volume for the previous day (4 September 2013) stood at US$ 37.38 million.
Some of the forward dollar rates that prevailed in the market were one month – 133.98; three months – 135.75; and six months – 138.35.
