Downward trend persists in secondary bond markets

Friday, 8 May 2015 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities The downward trend in secondary market bond yields persisted yesterday as well on the back of moderate volumes changing hands. Buying interest on the liquid maturities of 1 June 2018, 15 September 2019, 1 June 2020 and 15 March 2025 saw its yields dip to intraday lows of 7.91%, 8.16%, 8.40% and 8.95% respectively against its opening levels of 7.92/95, 8.20/25, 8.43/46 and 8.97/05. Meanwhile in secondary bill markets, continued demand saw August and November 2015 bills change hands within the range 6.00% to 6.05% and 6.12% to 6.15% respectively. In money markets, overnight call money and repo rates remained mostly unchanged to average 6.13% and 6.03% respectively as surplus liquidity increased further to Rs. 130.69 billion yesterday. Rupee appreciates on forward contracts The dollar/rupee rate on its active one month and two month forward contracts was seen appreciating yesterday to close the day at Rs. 134.70/80 and Rs. 135.20/40 respectively against its previously day’s closing levels of Rs. 134.80/00 and Rs. 135.70/80 on the back of export conversions. The total USD/LKR traded volume for 6 May was at $ 19.50 million. Given are some forward dollar rates that prevailed in the market: three months – 135.80; six months – 137.47.