Secondary market bond yields edge up marginally in thin trade
Tuesday, 7 January 2014 00:01
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By Wealth Trust Securities
Activity in secondary bond markets dried up yesterday due to a wait and see policy adopted by most market participants ahead of the proposed sovereign dollar bond issue. A limited amount of activity was witnessed on the two 2018 maturities (i.e.01.04.2018 and 15.08.2018) as its yields were seen dipping during morning hours of trading to intraday lows of 8.75% and 8.80% respectively following the dollar bond announcement.
However, yields were seen increasing once again towards the latter part of the day to intraday highs of 8.95% and 8.98% on the back of profit taking to close the day at levels of 8.89/93 and 8.92/95.
Meanwhile, continued demand for the 364-day bill saw it been quoted at levels of 7.25/40 in secondary markets.
Meanwhile in money markets, an amount of Rs. 51.91 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50% as the Open Market Operations (OMO) department continued to refrain from conducting any auctions yesterday. This led to weighted averages on overnight call money and repo rates dip marginally to 7.50% and 6.89% respectively as surplus liquidity in money market stood at high of Rs. 51.91 billion yesterday.
Rupee remains steady
Meanwhile in Forex markets yesterday, the USD/LKR rate remained steady to close the day at Rs. 130.70/75. The total USD/LKR traded volume for the previous day (3 January 2013) stood at $ 61.80 million. Some forward dollar rates that prevailed in the market were 1-Month Rs. 131.08, 3-Months: Rs. 131.73 and 6-Months: Rs. 132.93.
