Secondary market bond yields continue downward trend
Tuesday, 25 March 2014 00:00
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By Wealth Trust Securities
The downward momentum in secondary market bond yields continued yesterday as well with most liquid and active two 2018 maturities (i.e. 01.04.18 & 15.08.18) dipping to lows of 8.87% and 8.97% respectively from its opening levels of 8.95/00 and 9.00/05. In addition, the five year maturity of 1 July 2019 was seen dipping to an intraday low of 9.24% as well from its opening of 9.32% as considerable volumes were seen changing hands within this range. Furthermore the two year maturity of 01.04.2016, the three year of 15.07.02017 and the seven year of 01.05.2021 were seen quoted lower as well at levels of 7.30% to 7.40%, 8.22% to 8.32%, and 10.05% to 10.10% respectively.
Meanwhile in money markets, Overnight call money and repo rates continued to remain steady to average 6.90% and 6.39% respectively despite excess liquidity decreasing to Rs. 20.81 billion yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 12.08 billion on a four-day basis at a weighted average of 6.62% by way of a repo auction while a further amount of Rs. 8.73 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%.
Rupee remains steady
In Forex markets, the USD/LKR rate remained steady to close the day at Rs. 130.64/130.68. The total USD/LKR traded volume for the previous day (21 March 2014) stood at $ 76.32 million.
Some of the forward dollar rates that prevailed in the market were 1-Month: Rs. 131.28, 3-Months: Rs. 132.29 and 6-Months: Rs. 133.79.
