Secondary bond markets remain bullish ahead of weekly Treasury bill auction
Tuesday, 29 July 2014 00:01
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By Wealth Trust Securities
Activity in secondary bond markets remained sizeable as yields continued to reduce mainly on the liquid 1 July 2019 and 1 July 2022 maturities to intraday lows of 7.43% and 8.08% respectively during morning hours of trading against its opening highs of 7.48% and 8.11%.
In addition the 2018 maturities (i.e. 1 April 2018 and 15 August 2018) and the 1 January 2024 maturity were seen changing hands within the range of 7.22% to 7.25%, 8.30% to 8.34% and 7.46% to 7.48% respectively as well, while the 15 May 2017 traded within the range of 7.02% to 7.06%.
Meanwhile, Wednesday’s weekly auction will have on offer Rs. 1.0 billion on the 91 day, Rs. 2 b on the 182 day and Rs. 12 b on the 364 day maturities. This is in comparison to last week’s total offered amount of Rs. 10 b at where weighted averages declined by three basis points and five bp on the 91 day and 182 day maturities to 6.43% and 6.54% respectively while the 364 day maturity decreased sharply by 11 bp to 6.68%. In secondary bill markets, the 364 day bill was seen been quoted at levels of 6.58/63.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.69% and 6.49% respectively as overall surplus liquidity stood at Rs.72.49 billion. The total amount was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no Open Market Operations (OMO) were conducted yesterday.
Rupee remains steady
In Forex markets, the USD/LKR rate remained steady to close the day at Rs. 130.21/130.23 as markets were at equilibrium. The total USD/LKR traded volumes for 25 July stood at $ 58.70 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.46; three months – 131.05; and six months – 132.10.
