Secondary bond markets numb ahead of weekly auction
Tuesday, 3 March 2015 00:18
By Wealth Trust Securities
Activity in secondary bond markets was at a standstill yesterday ahead of today’s weekly bill auction conducted a day earlier due to a shortened trading week.
Today’s auction will see an total amount of Rs. 15 billion on offer consisting of Rs. 3 billion on the 91 day, Rs. 5 billion on the 182 day and Rs. 7 billion on the 364 day maturities.
At last week’s auction, weighted averages continued its increasing trend for a fourth consecutive week, with the 91day, 182 day and 364 day maturities reflecting increases of four basis points, six basis points and one basis point respectively to 5.98%, 6.09% and 6.13%. In money markets, the withdrawal of the special standing deposit facility of 5.00% saw overnight call money and repo rates increase yesterday to average 7.00% and 6.70% respectively as the total surplus volume of Rs. 24.46 b was deposited at CBSL’s repo window of 6.50%.
Rupee remains steady
The USD/LKR rate on spot and spot next contracts continued to remain stagnant at Rs. 132.90/10 and Rs. 132.94/10 yesterday while one week forwards contracts were seen dipping to Rs. 133.55/70. The total USD/LKR traded volume for 27 February was at $ 58.35 million.
Some of the forward USD/LKR rates that prevailed in the market were: one month – 134.35; three months – 135.75; and six months – 136.25.