Secondary market bond yields dip on the back of continued buying interest
Friday, 8 August 2014 00:57
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By Wealth Trust Securities
The downward trend in secondary market bond yields continued yesterday as well, as demand for the five year maturity of 1 July 2019 and the eight year maturity of 1 July 2022 saw its yields dip to intraday lows of 6.90% and 7.75% respectively against its opening highs of 7.00% and 7.90%.
In line with this, yields on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) were seen declining as well to lows of 6.82% and 6.86% respectively while on the longer end of the yield curve the 1 January 2024 and the two 2029 maturities (i.e. 1 January 2029 and 1 May 2029) were seen dipping to lows of 8.07% and 9.10% each respectively against its opening highs of 8.15% and 9.22% each. In secondary bill markets, the 364 day bill was quoted at levels of 6.35% to 6.40% while the 182 day bills was seen changing hands at levels of 6.30% to 6.35%.
Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.64% and 6.53% respectively as overall surplus liquidity stood at Rs.38.32 billion yesterday. The total amount was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no cash valued auctions under its Open Market Operations (OMO) were conducted yesterday. However the OMO department was seen mopping up an amount of Rs. 64.20 Billion via three term repo auctions at a single yield of 6.50% for 35 days and 56 days and 6.46% for 77 days, valued today.
Rupee remains steady
In Forex markets, the USD/LKR rate remained steady to close the day at Rs. 130.19/130.21 as markets continued to be at equilibrium. The total USD/LKR traded volumes for 6 August stood at $ 50.05 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.47; three months -131.05; six months – 132.00.
