Yields remain steady ahead of monetary policy announcement

Friday, 16 August 2013 03:41 -     - {{hitsCtrl.values.hits}}

Secondary market bond activity continued to be sluggish yesterday as yields remained broadly steady during a day where active two way quotes were mainly seen on the active two five year durations (i.e. 01.04.2018 & 15.08.2018) at levels of 11.30%-11.32% and 11.35%-11.38% respectively. Wealth Trust Securities said however buying pressure on secondary market Treasury bills remained throughout the day as markets awaited Central Bank’s monitory policy announcement for the month of August, due today. Treasury bills centering the 364 day maturity was seen changing hands within the range of 10.50% to 10.52% while durations for March 2014 was seen changing hands within the range of 9.95% to 10.05%. The overnight call money and repo rates remained steady to average 8.68% and 8.01% respectively as surplus liquidity in money markets remained high at Rs 25.11 Bn yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs 8 Bn on an overnight basis by way of a Repo auction at a WAvg of 7.46% while a further Rs 6.00 Bn was mopped up for a period 7 days at a WAvg of 7.92% as well. In addition, a further amount of Rs 11.11 Bn was seen been deposited at CBSL’s Repo window of 7.00%.