Tuesday, 5 November 2013 00:22
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Activity in secondary bond markets continued to remain high as yields increased yesterday Wealth Trust Securities said.
It said market was mainly focused on the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 18) to intraday highs of 10.99% and 11.04% respectively, reflecting a jump of 14 basis points and nine basis points respectively in morning hours of trading against their previous day’s closing figures.
“However, buying interest towards the latter part of the day saw yields closed the day lower once again at 10.93/95 and 10.98/03 respectively subsequent to hitting a intraday low of 10.91% and 11%,” Wealth Trust said.
Furthermore, a limited amount of activity was witnessed on the 1 January 2017 maturity as well at levels of 10.70%-10.75%. In Secondary market bills the 364-day bill was seen been quoted at levels of 9.79%-9.82%.
Commenting on money markets, Wealth Trust said overnight surplus liquidity increased marginally to Rs. 35.51 b yesterday with an amount of Rs. 22.35 b been drained out by way of a seven-day Repo auction at a WAvg of 7.47%. A further amount of Rs. 13.16 billion was seen been deposited at the Central Bank’s repo window of 6.50% while overnight call money and repo rates remained steady to average 7.78% and 7.03% respectively.
In Forex markets, the USD/LKR rate dipped marginally to an intraday low of Rs. 131.10 yesterday on the back of importer let demand. “However, any further pressure on the USD/LKR rate was negated due to selling interest at levels of Rs. 131.10. The total USD/LKR traded volume for the previous day (1 November 2013) stood at US$ 42.50 million,” Wealth Trust said.
