Secondary market bond yields stagnant as activity remained dull
Tuesday, 13 August 2013 01:09
By Wealth Trust Securities
Activity in secondary bond markets continued to be dismal yesterday as two way quotes on some maturities widened further.
The liquid two five years were the actively quoted maturities at levels of 11.28/32 and 11.34/37 respectively while the three year, four year and eight year maturities were quoted at levels of 10.88/00, 11.15/30 and 11.55/65 respectively. In addition, the 364 day bill continued to change hands at levels of 10.55% in secondary markets.
Overnight call money and repo rates remained steady yesterday to average 8.71% and 8.12% respectively as surplus liquidity in the system dropped to Rs. 22.67 b. An amount of Rs. 8 b was drained out of the system on an overnight basis at a WAvg of 7.62% % by way of Repo auctions conducted by the Open Market Operations (OMO) department of Central Bank while a further an amount of Rs. 14.67 b was deposited at CBSLâ€™s repo window of 7%.
In dollar/rupee markets, spot next contracts were seen changing hands within a range of Rs. 131.64 to 131.70 and closing the day marginally stronger at Rs. 131.64/67 subsequent to opening at Rs. 131.67/70 yesterday as traded volumes increased. The total USD/LKR traded volume for the previous day (8 August 2013) stood at US$ 49.00 million.
Some of the forward dollar rates that prevailed in the market were one month â€“ 132.56; three months â€“ 134.20; and six months â€“ 136.52.