Secondary market bond yields dip further ahead of bond auction
Tuesday, 29 October 2013 00:42
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By Wealth Trust Securities
Activity in secondary bond markets continued to remain high as yields dipped further yesterday mainly on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) to intraday lows of 10.78% and 10.85% respectively in comparison to its previous day’s closing levels of 10.94/97 and 10.98/03.
Furthermore yields on the 1 January 2017 maturity dipped as well to close the day at 10.58/65 subsequent to changing hands within the range of 10.60% to 10.65%.
Meanwhile today’s decisive bond auction, the first in two and a half months, will have on offer an total amount of Rs. 8 billion, of which Rs. 1 b will consist of 15 January 2019 maturity, Rs. 2 billion of 1 May 2028 maturity and Rs. 5 b n of 1 November 2033 maturity. This is in line with a Rs. 59.4 b bond maturity due on 1 November.
Meanwhile, in secondary market bills, August 2014 bills were quoted at levels of 9.60% to 9.70%, while the 364 day bill was seen been traded within 9.85% to 9.90%.
Money market liquidity increased to Rs. 35.85 billion yesterday with Rs. 25.45 b being mopped up for a period of seven days at a weighted average of 7.47%. In addition, an amount of Rs. 10.40 b was seen been deposited at CBSL’s repo window rate of 6.50% as overnight call money and repo rates averaged 7.84% and 7.09% respectively.
Rupee loses ground
In Forex markets, the rupee depreciated yesterday to a daily low of Rs. 131 on the back of importer demand. However selling interest at these levels towards the latter part of the day on spot contracts curtailed any further dip, to close the day at levels of Rs. 130.95-Rs. 131.00. The total USD/LKR traded volume for the previous day (25 October 2013) stood at US$ 57.70 million.
Some of the forward dollar rates that prevailed in the market were: one moth – 131.84; three months -133.48; and six months – 135.83.
