Secondary market bond yields dip marginally in moderate trade
Tuesday, 16 September 2014 00:01
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By Wealth Trust Securities
The week opened with activity in secondary bond markets remaining rather moderate as yields dipped marginally yesterday in comparison to its previous week’s closing levels.
Activity was witnessed on the maturities of 1 July 2019 and 1 May 2021 as it was seen hitting daily lows of 7.45% and 8.00% respectively in early hours of trading before closing marginally higher once again at levels of 7.46/50 and 7.95/05 in comparison to its previous weeks closing levels of 7.50/54 and 7.95/10.
In addition on the shorter end of the curve, the 15 May 2017 was seen changing hands within the range of 7.00% to 7.05% while on the longer end, the eight year maturity of 1 July 2022 was quoted within the range of 8.10% to 8.20%.
In secondary bill markets, January 2015 bills were traded within the range of 6.18% to 6.22%, March 2015 within 6.23% to 6.27% and July 2015 bills within the range of 6.28% to 6.35%.
Meanwhile in money markets, the overall surplus liquidity of Rs.47.46 billion was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no auctions under its Open Market Operations (OMO) were conducted yesterday. Overnight call money and repo rates remained steady to average 6.70% and 6.52% respectively.
Spot contracts and spot next contracts remain steady
In Forex markets, the USD/LKR rate on spot and spot next contracts were seen closing the day steady at levels of Rs. 130.28/30 and Rs. 130.30/33 respectively yesterday, as markets were at equilibrium. The total USD/LKR traded volume for 12 September was at $ 52.53 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.77; three months – 131.54; and six months – 132.62.
