Secondary market bond yields steady as activity dips considerably
Tuesday, 10 February 2015 00:48
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By Wealth Trust Securities
Activity in secondary bond markets dipped considerably yesterday with a very limited amount of movement witnessed on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) within a thin range of 7.12% to 7.14% and 7.17% to 7.19% respectively.
Two way quotes on the rest of the yield curve remained broadly steady in comparison to its previous trading day’s closing levels. In secondary market bills, June 2015 bills were seen changing hands at levels of 5.95%.
In money markets yesterday, overnight call money and repo rates averaged at 6.16% and 6.02% respectively as the Open Market Operations (OMO) department of Central Bank refrained from conducting any auctions yesterday. The surplus liquidity stood at Rs. 14.04 b.
Active two-way quotes on spot contracts resume
The limitation on forward premiums to two cents per day saw active two way quotes on spot contracts resume yesterday to close the day at Rs. 132.80/00. This intern saw the quotes on spot and spot next contacts appreciate to Rs. 132.82/02 and Rs. 132.84/04 respectively while the more active one week forward contracts closed the day at levels Rs. 132.94/04. The total USD/LKR traded volume for 6 February was at $ 69.90 million.
Some of the forward USD/LKR rates that prevailed in the market were one month – 133.42; three months – 134.60; and six months – 136.30.
