Secondary bond markets continue to trade within a thin range
Friday, 30 May 2014 00:00
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By Wealth Trust Securities
Activity in secondary bond markets continued to remain high yesterday as considerable volumes were seen changing hands across the yield curve within a very thin range.
Durations ranging from short term 2015 maturities to long term 15 year maturities were seen changing hands ahead of a bond maturity of Rs. 79.2 b due on 1 June with proceeds expected to the system on 2 June.
Late 2015 maturities were seen changing hands within a range of 7.18% to 7.20%, 2016 maturities within 7.50% to 7.52%, 2017 maturities within 8.00% to 8.02% the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) within 8.42% to 8.44% and 8.51% to 8.53% respectively followed by 1 July 2019 maturity within 8.94% to 8.96%.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.954% and 6.52% respectively yesterday as Central Bank continued to refrain from conducting any cash valued auctions under its Open Market Operations (OMO).
The total surplus of Rs. 9.75 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%. However the OMO department was seen mopping up an amount of Rs. 38.14 billion in total through three term repo auctions at yields of 6.74% for 28 days, 6.80% for 63 days and 6.82% for 77 days, valued today in line with its term maturities.
Rupee dips further
Continued importer demand saw the USD/LKR rate dip marginally yesterday to close the day at Rs 130.48/50. The total USD/LKR traded volume for the previous day (28 May) stood at $ 57.60 million. Given are some forward dollar rates that prevailed in the market: one month – 130.96; three months – 131.83; six months – 133.18.
