Bond market continues its bull run

Tuesday, 6 September 2016 00:02 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market remained bullish yesterday as yields were seen dipping further for a fourth consecutive day across the curve on the back of considerable volumes changing hands. The liquid maturities on the belly end of the yield curve, consisting of BUP_DFTDFT-10-LIST 01.03.21, 01.10.22, 01.09.23, 01.08.24, 15.03.25 and the two 2026’s (i.e. 01.06.26 and 01.08.26) were seen hitting intraday lows of 11.28%, 11.60%, 11.70% each, 11.86% and 11.88% each respectively against their days’ opening highs of 11.40%, 11.74%, 11.88%, 11.92%, 12.05%, 12.03% and 12.05%.

On the longer end, the 01.09.28 and 15.05.30 maturities were seen dipping to intraday lows of 12.00% and 12.05% respectively against their days’ opening highs of 12.15% and 12.25% while on the short end, the 2018 and 2019 maturities changed hands within the range of 10.80% to 10.95% and 11.10% to 11.25% as well.

Meanwhile, in money markets, overnight call money and repo rates remained steady to average 8.40% and 8.54% respectively as the net surplus liquidity in the money market stood at Rs. 6.84 billion yesterday.

An amount of Rs. 19.21 billion was deposited at its Standing Deposit Facility Rate (SDFR) of 7.00% while its Standing Lending Rate (SLFR) of 8.50% was accessed for an amount of Rs. 12.37 billion.

Rupee continues to appreciate

In Forex markets, the spot next rate was seen appreciating further yesterday to close the day at Rs. 145.47/50 against its previous day’s closing of Rs. 145.55/60. The total USD/LKR traded volume for 2 August 2016 was $ 98.35 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 146.25/35; three months - 147.85/95 and six months - 150.20/35.

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