Secondary market bond yields increase marginally on the back of moderate volumes

Tuesday, 12 August 2014 00:01 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Secondary market bond yields were seen increasing marginally yesterday on the back of moderate volumes changing hands. The maturities of 1 July 2022 and 1 January 2024 were the more actively traded durations as it was seen hitting intraday highs of 7.76% and 8.07% respectively against its days opening lows of 7.65% and 8.03%. In addition, yields on the two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) and the 1 July 2019 maturity were seen increasing as well to levels of 6.72/75, 6.76/82 and 6.84/88 respectively while on the longer end of the yield curve the two 2029 maturities (i.e. 1 January 2029 and 1 May 2029) were seen increasing to levels of 9.10/15 respectively. Meanwhile in money markets, overnight call money and repo rates remained steady to average 6.71% and 6.55% respectively as overall surplus liquidity stood at Rs. 24.73 billion yesterday. The total amount was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no auctions under its Open Market Operations (OMO) were conducted yesterday. Rupee gains marginally The rupee closed the day marginally higher at Rs. 130.16/17 yesterday in comparison to its previous day’s closing levels of Rs. 130.17/19 on the back of export conversions outweighing importer demand. The total USD/LKR traded volumes for the 8 August stood at $ 94.40 million. Some of the forward dollar rates that prevailed in the market were: one month – 130.46; three months – 131.06; and six months – 131.92.