Secondary Market Treasury Yields Dip

Friday, 24 August 2012 00:01 - - {{hitsCtrl.values.hits}}

Activity in the secondary bond market reflected a positive turn around yesterday as average volumes were seen changing hands. Yields dip marginally across the yield curve with the 19 month bond reflecting the most amount of activity as its yield dipped by 3 basis points (bp) to an intraday low of 13.77%. Moderate activity was witnessed on the 3 year and 5 year bonds as well as its yields dipped by 4 bp each to intraday lows of 13.88% & 14.28% respectively.

Meanwhile in money markets, surplus liquidity remained mostly unchanged at Rs 6.6 Bn yesterday as call money and repo rates remained stagnant at levels of 10.55% and 9.56% respectively. Furthermore an amount of Rs 1.041 Bn was mopped up from the system on an overnight basis at a weighted average of 9.43%, by Central bank through its Open Market Operations (OMO).

The rupee edged down marginally to Rs 132.35 yesterday due to continued demand for contracts value cash (23/8/12) and tom (24/8/12) as volumes traded remained high. Some of the forward dollar rates that prevailed in the market are 1 Month - 133.65; 3 Months- 136.25 and 6 Months- 139.80. (Source: Wealth Trust Securities)