Secondary market bond yields continue to edge higher on selling interest
Tuesday, 19 August 2014 02:58
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By Wealth Trust Securities
The upward trend in secondary market bond yields continued yesterday as well due to selling interest on the liquid maturities of the two 2018s (i.e. 1 April 2018 and 15 August 2018), the 1 July 2019 and the 1 July 2022.
Moderate volumes of these maturities were seen changing hands as its yields were seen increasing to intraday highs of 7.30%, 7.40%, 7.45% and 8.35% respectively against its previous day’s closing levels of 7.12/18, 7.18/25, 7.20/30 and 8.17/22. Meanwhile on the shorter end of the yield curve, 2015 and 2017 maturities were seen changing hands at levels of 6.48% to 6.52% and 6.87% to 6.93% respectively.
In money markets, overnight call money and repo rates remained steady to average 6.70% and 6.53% respectively as overall surplus liquidity dipped to Rs.34.60 billion yesterday, with the total amount been deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%.
Rupee remains stable
The dollar/rupee rate remained mostly unchanged within the range of Rs. 130.15-Rs. 130.17 yesterday. The total USD/LKR traded volumes for 15 August stood at $ 77.95 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.54; three months – 131.16; and six months – 132.19.
