Secondary market bond yields edge up marginally ahead of bond auctions
Tuesday, 7 April 2015 00:43
Two-year duration on offer for the first time in two and a half yearsBy Wealth Trust Securities
Activities in secondary bond markets moderated yesterday as yields were seen edging up marginally ahead of two Treasury Bond auctions due today. A two-year duration will be on offer through an auction for the first time in two and a half years for a volume of Rs 12.5 billion consisting of a maturity date of 15 May 2017 while a further Rs 7.5 billion will be on offer on a 6.04 year maturity of 1 August 2021. These two maturities were seen changing hands within the range of 7.73% to 8.00% and 9.10% to 9.30% respectively in secondary markets over the past few days.
In addition to this, selling interest on the 01.06.2018, 15.09.2019 and the 01.06.2020 maturities saw its yields edge up to intraday highs 8.62%, 8.92% and 9.12% respectively against its days opening lows of 8.57%, 8.85% and 9.08%. Furthermore, a limited amount of activity was witnessed on the 15.03.2025 maturity within the range of 10.10% to 10.12%.
Meanwhile, in money markets, overnight call money and repo rates averaged 6.70% and 6.58% respectively as net surplus liquidity stood at a high of Rs. 46.28 b yesterday.
Rupee continues appreciating trend
The rupee on one-week forward contracts appreciated yesterday to an intraday high of Rs. 133.32 against its previous day’s closing of Rs. 133.45/50 on the back of continued remittances and export conversions ahead of the festive season. The total USD/LKR traded volume for 2 April 2015 was at $ 81.20 million.
Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 133.95; 3 Months - 135.10 and 6 Months - 136.60.