Volatility keeps secondary bond markets alive

Tuesday, 8 October 2013 00:19 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Volatility in secondary bond market yields helped keep activity high yesterday. Yields were seen edging up during morning hours of trading but closed the day lower from its daily highs on the back of buying interest once again. Active two way quotes were mainly seen on the liquid two five year maturities (i.e. 01.04.2018 & 15.08.2018), the three and a quarter year maturity (01-01-2017) and on the two year maturities. On the five year maturities, yields were seen opening the day at levels of 11.63/65 and 11.65/69 respectively and increase to a daily high of 11.73%, the 2017 opened at levels of 11.43/48 and increased to a daily high of 11.52% while the two year opened the day at 10.75/78 and increased to a high of 10.88%. In secondary bill markets, January 2014 bills were quoted at levels of 8.80% to 9.00%, May 2014 at 9.80% to 9.90%, June 2014 at 10.15% to 10.25% while the latest 364 day bill was at 10.43/48 Meanwhile in money market, overnight call money and repo rates remained steady to average 8.40% and 7.95% respectively as surplus liquidity remained steady at Rs 15.71 billion (Bn) yesterday. The Open Market Operations (OMO) department of Central Bank mopped up Rs 4.95 Bn for a period of seven days once again at a weighted average of 7.98% while a further Rs 10.76 Bn was deposited at its Repo window of 7.00%. Rupee remains steady The USD/LKR rate was seen closing the day at Rs 131.15/17 yesterday subsequent to gaining to a daily high of Rs 131.10 on the back of thin volumes. The total USD/LKR traded volume for the previous working day (04-10-13) stood at US $ 54.65 million. Some of the forward dollar rates that prevailed in the market were 1 Month - 132.12; 3 Months -133.70 and 6 Months - 136.25.