Secondary bond markets dull ahead of primary auctions

Tuesday, 14 July 2015 00:38 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market remained rather dull yesterday as most market partakers were seen on the sidelines ahead of two Treasury bond auctions due today.

A total amount of Rs. 20 billion will be on offer today, consisting of Rs. 10 billion each on a 3.03 year maturity of 15 October 2018 and an 8.01 year maturity of 1 September 2023.

Two way quotes were seen widening during the course of the day. However, demand for short tenure bills saw August and October 2015 bills changing hands at levels of 6.05% and 6.10% respectively.

Meanwhile in money markets yesterday, overnight call money and repo rates averaged 6.17% and 5.91% respectively as surplus liquidity remained high at Rs. 64.40 billion.

Rupee loses ground for the first time in seven days

Despite the issuance of SLDB’s to the tune of $ 301 million, the USD/LKR rate on spot contracts depreciated by 20 cents to Rs. 133.80 yesterday. The total USD/LKR traded volume for the previous day (10 July) stood at $ 25.95 million.

Some of the forward dollar rates that prevailed in the market were one month – 134.35/50; three months – 135.45/55 and six months – 137.00/15.