Secondary market bond yields increase marginally as activity dips
Tuesday, 5 August 2014 00:56
-
- {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Activity in secondary bond markets moderated yesterday while surrounding the liquid two maturities of 01.07.2019 and 01.07.2022, as selling interest on profit taking saw its yields increase to daily highs of 7.10% and 8.02% respectively from its opening levels of 7.02/07 and 7.94/95. However, buying interest at these levels curtailed any further upward movement. In addition, the two 2018 maturities (i.e. 01.04.2018 and 15.08.2018) and the 01.01.2024 maturity were seen changing hands within the range of 6.95% to 7.00%, 7.00% to 7.06% and 8.15% to 8.20% respectively as well. Meanwhile in secondary bill markets, continued demand saw the 182 day 364 day maturities quoted at levels of 6.40/45 and 6.48/53 respectively.
Meanwhile in money markets, overnight call money and repo rates averaged 6.65% and 6.53% respectively as surplus liquidity stood at Rs 26.97 Bn yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs 3.82 Bn on a four day basis at a WAvg of 6.50% while a further amount of Rs 23.15 Bn was deposited at its Standing Deposit Rate (SDR) of 6.50%.
Rupee remains steady
In Forex markets, the USD/LKR rate remained steady to trade within a narrow band of Rs 130.21 to Rs.130.23. The total USD/LKR traded volumes for the 01st of August 2014 stood at US $ 100.05 million.
Some of the forward dollar rates that prevailed in the market were 1 Month -130.51; 3 Months -131.13 and 6 Months -132.16.
