Money market rates hit 21-month low

Friday, 11 October 2013 03:39 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Overnight call money and repo rates hit a 21-month low yesterday to average 7.75% and 8.33% respectively, levels last seen in December 2011.

Overnight surplus liquidity dipped marginally to Rs. 16.73 b as the Open Market Operations (OMO) department of Central Bank was seen mopping up Rs. 1.85 b for a period of seven days once again at a weighted average of 7.98% while a further Rs. 14.88 b was deposited at its Repo window rate of 7.00%. This is turn drove secondary market bond yields further down yesterday with the liquid five year maturity hitting a daily low of 11.52% against its opening of 11.61/63, the three and a quarter year

maturity to a low 11.25% against its opening of 11.38/42 and the two year maturity to a low of 10.68% against its opening of 10.73/78 with activity remaining very high. In addition, January 2014 bills continued to change hands within the range 8.70% to 8.90%, May

2014 within 9.70% to 9.80% while the 364 day bill was seen changing hands at levels of 10.45% to close the day at 10.43/47 in secondary markets. Rupee remains stable In Forex markets, the USD/LKR rate remained steady; to close the day at Rs. 131.12 / 131.15 as volume traded moderated. The total USD/LKR traded volume for the previous day (9 October 2013) stood at US$ 55.64 million. Some of the forward dollar rates that prevailed in the market were one month – 132.04; three months – 133.63; and six months – 136.13.

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