Activity in the bond market dips once again

Friday, 9 December 2016 00:01 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market dipped once again yesterday as most market participants were seen on the sidelines ahead of the FED rate decision due next week and the season ahead.

A limited amount of activity was witnessed on the 01-05-2021 and 01-08-2024 maturities within the range of 12.20% to 12.38% and 12.49% to 12.50% respectively. Yields on the rest of the curve remained broadly steady.

In money markets, the net liquidity shortfall was seen increasing further to Rs. 17.58 billion yesterday. However, overnight call money and repo rates remained broadly steady to average 8.41% and 8.48% respectively.

The USD/LKR rate in the Forex market remained steady to close the day at Rs. 148.90/95 on its spot next contracts as markets were at equilibrium. The total USD/LKR traded volume for 7 November 2016 was $ 119.34 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 149.70/80; three months - 151.15/25 and six months - 153.50/60.