Secondary market bond yields continue downward trend
Friday, 6 June 2014 03:13
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By Wealth Trust Securities
The positive momentum witnessed in secondary bond markets over the past few days, continued with yields dipping across the board. The most actively traded maturities of 15.05.2017, 15.01.2019, 01.07.2019 and 01.05.2021 saw their yields hitting intraday lows of 7.70%, 8.55%, 8.81% and 9.38 as against opening levels of 7.85/90, 8.65/70, 8.82/85 and 9.43/48.
Furthermore, yields on the three year maturity of 01.03.2017 dipped to 7.70% as against its opening levels of 7.78/82, with considerable volumes changing hands within this range.
The shorter maturities of 01.11.2015 and 01.09.2016, as well as the four year maturities of 01.04.2018 and 15.08.2018 and the eight year of 01.07.2022 were all quoted at the lower levels of 7.10% to 7.15%, 7.37% to 7.43%, 8.29% to 8.31%, 8.35% to 8.39% and 9.89% to 9.91% respectively.
Meanwhile in money markets, the Open Market Operations (OMO) Department of the Central Bank successfully drained out an total amount of Rs. 23.95 billion by way of three term Repo auctions, consisting of 28 days at a weighted average (WAvg) of 6.75%, 63 days at 6.81% and 77 days at 6.84% respectively, for value Friday 6 June. In addition, a further amount of Rs. 11 billion was mopped up on an overnight basis by way of a Repo auction at a WAvg of 6.54%.
Overnight call money and Repo rates averaged 6.96% and 6.53%, as surplus liquidity increased to Rs. 15.22 billion.
Rupee gains further
The rupee closed the day marginally higher at Rs. 130.28/30 in comparison to its previous day’s closing levels of Rs. 130.30/32. The total USD/LKR traded volume for the previous day (04 April 2014) stood at $ 88.30 million.
Some of the forward dollar rates that prevailed in the market were 1 Month: Rs. 130.77, 3 Months: Rs. 131.62 and 6 Months: Rs. 132.81.
