Secondary bond market activity dries up

Friday, 14 June 2013 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Secondary bond market activity contracted yesterday with thin volumes seen changing hands mainly on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018). Yields on these two maturities closed the day mostly unchanged at levels of 11.12/15 and 11.16/19 respectively while the relatively illiquid two five year maturities (i.e. 1 February 2018 and 15 July 2018) was seen changing hands at levels of 11.17% to 11.18% as well. In addition the 364 day bill was seen changing hands at levels of 10.85% once again.

In money markets yesterday, overnight call money and repo rates remained steady to average 8.56% and 8.24% respectively as surplus liquidity dipped marginally to Rs. 10.032 b. The Open Market Operations (OMO) department of Central Bank drained an amount of Rs. 9.5 b from the system at a weighted average of 7.75% by way of an overnight repo auction. In addition a further amount of Rs. 5 b was mopped up by way of outright sales of Treasury bills at a weighted average of 8.56% for a period of 35 days, value dated today.