Activity in secondary market picks up ahead of inflation announcement

Activity in secondary bond markets picked up yesterday with trades seen taking place from durations ranging from the three-year bond to the six-year bond.

According to Wealth Trust Securities buying interest was witnessed on the longer tenure of the yields curve while same trend was witnessed on the shorter tenure of the curve as well.

The most activity been witnessed on the three-year and six-year bonds as its yields dip to intraday day lows of 12.35% and 12.90% respectively, while on the secondary bill market, all three maturities were seen bid below their respective weighted averages.

The announcement on Inflation figures for the month of November is due to on today.

In money markets liquidity was at a net surplus for a second consecutive day at Rs. 1.35 billion yesterday as the Central Bank refrained from conducting any Open market Operation (OMO) auctions. Overnight call money and repo rates remained steady to average 10.58% and 9.65% respectively.