Secondary market bond yields edge higher on thin trade

Friday, 24 January 2014 06:49 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities The upward trend in secondary market bond yields continued yesterday as well due to selling pressure on the regularly traded maturities of 1 April 2016, 1 August 2016, the two 2018s (i.e. 1 April 2018 and 15 August 2018) and the 1 July 2019 on the back of thin volumes. Moderate volumes of these maturities were seen changing hands at highs of 8.25%, 8.40%, 9.32%, and 9.35% in comparison to its previous day’s

closing levels of 8.10/30, 8.20/30, 9.20/25, 9.27/33 and 9.25/35. In the meantime the shorter end of the yield curve saw 2015 maturities (i.e. 15 March 2015 and 15 July 2015) changing hands at levels of 8.50% to 8.60% and 8.65% to 8.70% respectively. In secondary bill markets, March 2014 maturities were quoted at levels of 6.70% to 6.80%, July 2014 at 6.90% to 7.05%, August 2014 at 7.05% to 7.15% and the latest 364 day bill at 7.10% to 7.25%. Meanwhile in money markets, overnight call money and repo rates remained steady to average 7.40% and 6.76% respectively as overall surplus liquidity dipped to Rs. 22.08 billion yesterday, with the amount been deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50%. The Open Market Operations (OMO) department of Central Bank was seen carrying out a term repo auction valued for today, for Rs.10.00 Bn for a period of 35 days where an amount of Rs. 6.3 b was successfully drained out at WAvgs of 6.82. Rupee appreciates marginally Meanwhile in Forex markets, the rupee gained marginally yesterday to close the day at levels of 130.67/72 on the back of export conversions outweighing importer demand. The total USD/LKR traded volume for the previous day (22 January 2014) stood at US$ 104.15 million. Some of the forward dollar rates that prevailed in the market were one month – 131.09; three months – 131.80; and six months – 132.95.