Secondary market bond yields continue upward trend
Friday, 14 November 2014 02:01
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Liquidity dips to a six month low
By Wealth Trust Securities
The upward momentum in secondary market bond yields continued yesterday as well with the most liquid maturities of 15.08.2018, 01.07.2019, 01.07.2022 and 01.01.2024 increasing to intraday highs of 7.05%, 7.10%, 7.80 and 8.00% respectively against its previous day’s closing levels of 6.95/00, 7.05/10, 7.65/70 and 7.80/85. In addition, the three year maturity of 15.07.2017 and the seven year maturity of 01.05.2021 was quoted high as well at levels of 6.70/80 and 7.40/50 respectively.
Liquidity dips to a six month low
Meanwhile in money markets, overnight call money and repo rates continued to increase marginally to average 6.05% and 5.48% respectively as excess liquidity decreased further to a six month low of Rs. 1.22 billion yesterday.
The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs 12.05 Bn by way of a seventy seven day repo auction at a weighted average of 6.03%, valued for today.
Rupee remains steady
The dollar/rupee (USD/LKR) rate on spot next-next contracts (six day forwards) closed the day steady at Rs 131.10/15 while spot and spot next contracts were inactive. The total USD/LKR traded volume for the 12th November 2014 was at US $ 102.40 million.
Some of the forward dollar rates that prevailed in the market were 1 Month - 131.55; 3 Months - 132.65 and 6 Months - 133.80.
