Secondary market yields steady ahead of weekly auction
Wednesday, 26 November 2014 00:00
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By Wealth Trust Securities
Secondary market bond yields were seen closing the day broadly steady yesterday in comparison its previous day’s closings, subsequent to increasing during morning hours of trading.
In the morning hours of trading, selling interest saw yields on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) increase to daily highs of 7.20% and 7.30% respectively followed by the 1 July 2019 maturity to 7.35% and the 1 July 2022 to 7.20%. However, buying interest at these levels curtailed any further upward movement.
Meanwhile, today’s auction will see an total amount of Rs. 12 billion on offer, comprising of Rs. 3 billion of the 182 day bill and Rs. 9 billion of the 364 day bill against its previous week’s total offered amount of Rs. 10 billion, solely on the 364 day bill. The weighted average on the 364 day bill has remained stagnant at 6.00% for six consecutive weeks.
The overnight call money and repo rates remained unchanged to average at 6.00% and 5.51% respectively as no OMO auction were conducted yesterday. Liquidity stood at surplus Rs. 10.75 billion.
Rupee depreciates further
In Forex markets, continued demand saw the dollar/rupee (USD/LKR) rate on spot next-next contracts (Four day forwards) depreciate further yesterday to close the day at levels of Rs. 131.90/132.00, in comparison to its previous day’s closing level of Rs. 131.50 /60. The total USD/LKR traded volume for the 24 November was at $ 72.95 million.
Some of the forward dollar rates that prevailed in the market were: three months – 132.98; and six months – 134.25.
