Secondary market bond yields edge up marginally on profit taking
Tuesday, 22 July 2014 00:01
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By Wealth Trust Securities
Activity in secondary bond markets moderated yesterday as profit taking saw yields close the day marginally higher in comparison to its Friday’s closing levels.
Activity centered on the five year maturity of 1 July 2019 and the eight year maturity of 1 July 2022 as its yields were seen increasing to intraday highs of 7.83% and 8.43% respectively against its days opening lows of 7.68% and 8.33% closely followed by the two four-year maturities (1 April 2018 and 15 August 2018) as its yields increased as well to hit 7.55% and 7.60% respectively against its opening lows of 7.50% and 7.53%.
In addition, a limited amount of activity was witnessed on the longer end of the yield curve with the two 2029 durations (i.e. 1 January 2029 and 1 May 2029) seen changing hands within the range of 9.70% to 9.75%.
Meanwhile in money markets, overnight call money and repo rates averaged 6.73% and 6.50% respectively as surplus liquidity stood at Rs. 34.92 b yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 7.40 b on a four-day basis at a WAvg of 6.50% while a further amount of Rs. 27.52 b was deposited at its Standing Deposit Rate (SDR) of 6.50%.
Rupee trades within a tight band
The rupee traded within a tight band throughout the day to close the day at Rs. 130.26/28. The total USD/LKR traded volumes for 18 July stood at $ 67.25 million.
Some of the forward dollar rates that prevailed in the market were one month – 130.48; three months – 131.12; and six months – 132.32.
