Secondary market bond yields continue to decline

Friday, 15 May 2015 00:27 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The continued buying interest on the shorter leg of the yield curve saw secondary market bond yields dip further yesterday. Buying interest on the two-year maturity of 15.05.2017 and the three-year maturity of 01.06.2018 saw its yields dip to intraday lows 7.00% and 7.77% respectively from its day’s opening highs of 7.05% and 7.83%.

In addition, a limited amount of activity was witnessed on the liquid maturities of 15.09.2019, 01.05.2020, 01.08.2021 and 01.09.2023 within the range of 8.08% to 8.12%, 8.30% to 8.33%, 8.45% to 8.48% and 8.70% to 8.73% respectively.

Meanwhile, in money markets, overnight call money and repo rates remained steady to average 6.13% and 6.12% respectively as surplus liquidity remained high at Rs. 123.10 billion yesterday.

Rupee closes steady

The rupee on one-month and two-month forward contracts was seen closing the day mostly unchanged at levels of Rs. 134.70/80 and Rs. 135.55/60 respectively as markets were at equilibrium. The total USD/LKR traded volume for the previous day (13-05-15) stood at $ 32.95 million.

Some of the forward dollar rates that prevailed in the market were 3 months - 136.10/25 and 6 months - 137.85/05.