Secondary market bond rates continue to hold steady

Friday, 12 April 2013 03:20 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The recent comments by authorities on the future direction on interest rates coupled with the wait and see approach by most market participants ahead of monetary policy announcement due on the 16th of April, saw secondary market bond yields remain steady yesterday. A limited amount of activity was witnessed on the 3 year, 4 year and 5 year maturities at levels of 11.25% - 11.27%, 11.10% - 11.17% and 11.40% respectively.

However yields on secondary market bills continued to drop yesterday as continued demand for durations ranging from 9 month to 12 months bills was witnessed yesterday.

Meanwhile in money markets, Overnight call money and repo rates remained steady to average 9.44% and 8.57% respectively as money market liquidity recorded a surplus of Rs 35.03 Bn yesterday.

The Open Market Operations (OMO) department of Central Bank drained out an amount of Rs.31.93 Bn at a weighted average of 8.35% by way of an overnight Repo auction while an total amount of Rs 14.5 Bn was mopped up from the system for tenures ranging from 21 days to 42 days by way of outright sale of Treasury bills yesterday.