Secondary market bond yields dip marginally in thin trade
Tuesday, 14 October 2014 11:24
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Secondary market bond yields were seen decreasing marginally yesterday in thin trade mainly on the shorter end of the yield curve.
Buying interest on the two year maturities of 1 April 2016 and 1 August 2016 and the three year maturity of 15 May 2017 saw its yields dipping to intraday lows of 6.30%, 6.40% and 6.70% respectively against their previous weeks closing levels of 6.40/55, 6.50/60 and 6.78/85.
The decrease in yields was mainly attributed to the decrease in weighted averages on overnight call money and repurchase transactions to 6.19% and 6.00% respectively as liquidity stood at high of Rs. 43.42 billion yesterday.
In addition, a limited amount of activity was witnessed on the 1 July 2022 maturity within the range of 7.48% to 7.53% and the 1 January 2024 maturity within the range of 7.75% to 7.82% as well.
Rupee dips marginally
In Forex markets, the rupee on spot next contracts (17 October) was seen depreciating yesterday to close the day at Rs. 130.70/80 on the back of importer demand as spot contracts were not traded. The total USD/LKR traded volume for 10 October was at $ 82.40 million.
Some of the forward dollar rates that prevailed in the market were: one month – 131.25; three months – 132.03; and six months – 133.05.
