Secondary market bond yields dip ahead of Inflation
Tuesday, 31 December 2013 00:01
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By Wealth Trust Securities
Renewed buying interest saw secondary market bond yields dip once again at the start of the week ahead of today’s Inflation announcement for the month of December. Inflation for the month of November saw its point to point decrease to a 20 month low of 5.60% while its annual average continued its downward trend as well to record a 12 months low of 7.30%. Once again activity centered around the liquid two 2018 maturities (i.e. 01.04.2018 & 15.08.18) as their yields were seen hitting intraday lows of 9.50% and 9.57% respectively against its days opening highs of 9.60% and 9.68%. In addition, a limited amount of activity was witnessed on the 01st April 2016 maturity at levels of 8.95% while the 364-day bill was quoted at 8.00/10.
Meanwhile in money markets, the Open Market Operations (OMO) department of the Central Bank was seen mopping up an amount of Rs. 17.11 billion by way of a four-day Repo auction at a WAvg of 7.15% yesterday while a further amount was deposited at its Repo window as well. Overnight call money and Repo rates continued to be stable to average 7.61% and 7.00% respectively.
Rupee steady
In Forex markets, the rupee closed the day mostly unchanged at Rs. 130.80/85 subsequent to dipping to a daily low of Rs. 130.90 on demand for contracts value cash. The total USD/LKR volume for the previous day (27 December 2013) stood at $ 14.17 million.
