Secondary market bond yields increase across the curve

Tuesday, 26 July 2016 00:04 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond markets remained active yesterday as yields were seen increasing across the yield curve mainly on the belly end of the curve, reversing a downward trend during morning hours of trading.

Selling interest on the 01.09.23, 01.01.24, the two 2025s (15.03.25 and 01.08.25) and the 01.06.26 maturities saw its yields increase BUP_DFTDFT-8-02 to intraday highs of 12.22%, 12.27%, 12.30% each and 12.40% respectively against its day opening lows of 12.08%, 12.15%, 12.20% each and 12.25%.

In addition, on the short end of the curve, the 15.09.19 and 01.03.21 maturities were seen changing hands within the range of 11.44% to 11.48% and 11.70% to 11.76% respectively as well.

In secondary market bills, February and April 2017 maturities were quoted at 9.55/65 and 9.85/95 respectively.

Meanwhile in money markets, overnight call money and repo rates remained steady to average 8.24% and 8.07% respectively as the net liquidity shortfall increased marginally Rs. 46.41 billion yesterday. The Open Market Operations (OMO) Department of Central Bank injected an amount of Rs.32.83 billion at a weighted average of 7.98% on an overnight basi

Rupee depreciates marginally

In Forex markets, the active one week forward contract was seen dipping marginally yesterday to Rs.146.20/35 against its previous day’s closing of Rs.146.00/20 on the back of importer demand. The total volume traded during the day of 22 July was $ 54.95 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 146.85/00; three months – 148.45/60; six months – 150.80/00.

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