Secondary market bond yields edge up marginally in thin trade
Tuesday, 9 July 2013 00:33
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By Wealth Trust Securities
A buyer’s market environment in secondary markets saw activity dry up yesterday as yields edged up marginally in thin trade. Active two way quotes were mainly seen on the liquid two five year maturities (i.e. 1.4.18 and 15.8.18) as it closed the day at levels of 11.40/42 and 11.46/50 respectively subsequent to changing hands at 11.40% and 11.46% in very thin trades.
The subdued environment was further supported by the wait and see approach by most market participants as well. However, demand for the 364 day bill continued as it was seen been traded at levels of 10.60% before closing the day at 10.58/60.
Overnight call money and repo rates remained steady yesterday to average 8.70% and 8.26% respectively as surplus liquidity remained high at Rs. 34.15 billion. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 31.06 billion on an overnight basis at a weighted average of 7.79% by way of a repo auction while a further amount of Rs. 3.09 billion was seen been deposited at CBSL’s repo window of 7.00%.
Furthermore, no bids were received for the panned two auctions of outright sales of Treasury bills in order to mop up a further Rs. 6.8 billion in total from the system for durations of 24 and 38 days respectively.
Rupee remains steady
The USD/LKR spot rate continued to remain steady for a fifth consecutive day at Rs. 130.60/70 yesterday. However, spot next contracts (11 July) were seen changing hands within the day at levels of Rs. 130.95 to Rs. 130.99 while it closed the day at Rs. 130.95/131.10. The total USD/LKR traded volume for the previous day (5.7.13) stood at US$ 53.45 million.
