Secondary bond market yields resume downward trend

Friday, 23 May 2014 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Secondary market bond yields resumed their downward trend yesterday on the back of moderate volumes changing hands mainly on the liquid two maturities of 1 April 2018 and 1 July 2019 as it was seen hitting intraday lows of 8.48% and 8.97% respectively against its previous day’s closing levels of 8.50/52 and 8.98/00. Furthermore, maturities such as 1 November 2015 and 1 September 2016 were seen trading within the range of 7.20% to 7.23% and 7.58% to 7.60% respectively as well. Meanwhile, in secondary bill markets, August 2014 durations were seen changing hands within the range of 6.60% to 6.63% and February durations within the range of 6.88% to 6.90%. The Open Market Operations (OMO) department of the Central Bank mopped up Rs. 35.02 billion from the system through three term repo auctions yesterday at yields of 6.74% for 28 days, 6.80% for 63 days and 6.81% for 77 days, valued today. The balance surplus of Rs. 7.81 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) at 6.50%. Overnight call money and repo rates remained steady to average 6.95% and 6.52% respectively. Rupee continues to trade within a narrow range The USD/LKR rate treaded within a narrow range of Rs. 130.35 to 130.36 yesterday. The total USD/LKR traded volume for the previous day (21 May 2014) stood at $ 101.90 million. Some of the forward dollar rates that prevailed in the market were: one month – 130.83; three months – 131.84; and six months – 133.34.