Secondary market Treasury yields steady ahead of weekly auction

Activity in secondary bond markets reduced somewhat yesterday as yields remained steady during the day, Wealth Trust Securities said.

Active two way quotes were seen mainly on the four year and five year maturities within the levels of 11%-11.10% and 11%-11.15% respectively.

Furthermore, selling pressure on secondary market Treasury Bills mainly on the 364 day bill at levels of 11.22% to 11.25% remained throughout the day as the market eagerly awaited the outcome of the record Treasury bill auction due today, Wealth Trust added.

In money markets, overnight call money and repo rates remained steady to average 9.83% and 8.87% respectively as surplus liquidity remained mostly unchanged at Rs. 6.325 billion yesterday.

An amount of Rs. 6.325 billion was deposited at CBSL’s repo window rate of 7.50% as the Central Bank refrained from conducting any overnight OMO auctions for a second consecutive day.

Meanwhile in Forex markets yesterday, the rupee remained stable at levels of Rs. 127.20 to Rs. 127.40 for the second consecutive day. The total US$/LKR traded volume for the previous day (4 January 2013) stood at US$ 31.65 million.