Selling pressure drives secondary market rates up

The yields on secondary market bonds increased mainly on the two liquid five-year maturities (i.e. 1 April 2018 and 15 August 2018), which reflected the most amount of activity as its yields increased from a daily low of 11.28% to an high of 11.40% yesterday.

However, buying interest at these levels saw yields dip once again to close the day at 11.35%-11.38% according to Wealth Trust Securities.

It said Rs. 28.99 billion was mopped up from the system on an overnight basis at a weighted average of 8.35% by way of a Repo auction conducted by the Open Market Operations (OMO) department of Central Bank as surplus liquidity remained high at Rs. 36.44 billion.

“This intern helped overnight call money and Repo rates to average mostly unchanged at 9.43% and 8.58% respectively,” Wealth Trust added.