Secondary market bond yields steady as activity dries up
Tuesday, 26 November 2013 00:01
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By Wealth Trust Securities
Activity in secondary bond markets dried up yesterday as yields remained steady with two way quotes mainly seen on the 1 January 2017 and two liquid five-year maturities (i.e. 15 August 2018 and 1 April 2018) at levels of 10.82/88, 11.10/15 and 11.22/27 respectively.
Nevertheless, continued buying interest on secondary market bills saw May 2014 bills change hands within the range of 8.70% to 8.80%, August 2014 within 9.40% to 9.45%, and October 2014 within 9.58% to 9.62%.
The overnight call money and repo rates held steady to average 7.75% and 7.04% respectively as surplus liquidity in money market remained high of Rs. 26.90 billion yesterday. The Open Market Operations (OMO) department of Central Bank continued to mop up liquidity on a seven day basis for an amount of Rs. 20.19 billion at a weighted average of 7.46% while a further Rs. 6.71 b was deposited at its widow rate of 6.50%.
Rupee remains stable
In USD/LKR markets, rupee on all contracts (i.e. cash, tom, spot and spot next) remained at levels of Rs. 131.10/12, Rs. 131.10/13, Rs. 131.10/15 and Rs. 131.23/26 respectively as volume traded moderated.
The total USD/LKR traded volume for the previous day (22 November 2013) stood at US$ 67.60 million.
Some of the forward dollar rates that prevailed in the market were one month – 131.99; three months -133.63; and six months – 136.03.
