Activity in secondary bond markets moderate
By Wealth Trust Securities
Activity in secondary bond markets was seen moderating yesterday as most market participants was seen keeping a close watch on the outcome of the interim budget.
A very limited amount of activity was witnessed on the 1 July 2022 maturity within the range of 7.65% to 7.70% as the rest of the yield curved remained inactive. In secondary bill markets, May and November 2015 durations were seen changing hands within the range of 5.78% to 5.82% and 5.94% to 5.96% respectively.
In money markets, Central Banks Open Market Operations (OMO) Department was seen mopping up excess liquidity by way of one term repo auction and three auctions for outright sales of Treasury bills.
The term repo auction drained an amount of Rs. 15 billion at a weighted average of 5.97% for 77 days, while a further amount of Rs. 15 b was mopped up for seven, 14 and 28 days at weighted averages of 5.50%, 5.67% and 5.72% respectively through the outright sales. Overnight call money and repo rates remained steady to average 5.83% and 5.23% respectively.
Activity in rupee markets dry up
Only the one week forward dollar/rupee (USD/LKR) rate was seen actively quoted yesterday to close the day at 133.45/70 as spot, spot next and spot next-next quotes were inactive. The total USD/LKR traded volume for 28 January was $ 88.85 million.
Some of the forward USD/LKR rates that prevailed in the market were one month – 133.65; three months – 134.70; and six months – 136.00.