Secondary market bond yields remain broadly unchanged in thin trade
Friday, 24 October 2014 00:24
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By Wealth Trust Securities
The secondary market bond yields remained broadly unchanged yesterday in thin trade with the liquid maturities of 1 July 2022 and 1 January 2024 changing hands within the range of 7.70% to 7.76% and 8.02% to 8.05% respectively.
Furthermore, a limited amount of activity was also witnessed on the two 2018 (i.e. 1 April 2018 and 15 August 2018) maturities and the 15 May 2017 maturity at level of 6.95% to 7.00%, 7.15% to 7.20% and 6.93% to 6.98%, while the 364 day bill was quoted within a range of 5.90% to 6.00%.
Liquidity dips to 15-week low
Surplus liquidity in money markets dipped to a fifteen week low of Rs. 4.88 billion yesterday as the OMO (Open Market Operations) department of Central Bank was seen mopping up an amount of Rs. 54.58 billion via three term repo auctions at yields of 5.95% for 35 days, 5.94% for 56 days and 6.01% for 77 days respectively, valued today. However, overnight call money and repo rates remained steady to average 6.00% and 5.49% respectively.
Rupee remains steady
The dollar/rupee (USD/LKR) rate on spot next contracts remained steady within the range of Rs. 130.95-Rs.131.10 yesterday as markets were at equilibrium. The total USD/LKR traded volume for 21 October was at $ 46.25 million.
Given are some forward dollar rates that prevailed in the market: one month – 131.33; three months – 132.13; six months – 133.25.
