Activity in secondary bond markets remains high
By Wealth Trust Securities
Activity in secondary bond markets continued to remain high yesterday as yields were seen decreasing marginally during morning hours of trading mainly on the liquid maturities of 1 July 2019, 1 May 2021 and 1 July 2022 to intraday lows of 6.55%, 7.05% and 7.18% respectively. In addition, the auctioned maturity of 1 May 2029 was seen dipping to an intraday low of 8.55% as well.
However, subsequent to the release of the Treasury bond auction results, yields were seen increasing marginally once again on the back of profit taking. The Treasury bond auction conducted yesterday, the first in two months drew considerable interest recordings impressive weighted averages of 7.15% and 8.63% respectively for the maturities of 1 October 2022 and 1 May 2029.
Furthermore, considerable buying interest on the four year maturities of 2018s (i.e. 1 April 2018, 15 July 2018 and 15 August 2018) saw it change hands within the range of 6.48% to 6.55% yesterday. In secondary bill markets, October 2014 bills were seen changing hands within the range of 5.25% to 5.35% while the 364 day bill was quoted at levels of 5.50% to 5.70%.
In money markets, call money and repo rates were seen decreasing further to average at 5.95% and 5.93% respectively yesterday as surplus liquidity continued to remain high at Rs 76.83 billion.
Rupee dips further
Equity outflows coupled with importer demand saw the rupee on spot next contracts dip to an intraday low of Rs. 130.51 yesterday as activity on spot contracts was restricted. The total USD/LKR traded volume for 26 September was at $ 13.71 million.
Some of the forward dollar rates that prevailed in the market were: one month – 130.85; three months – 131.38; and six months – 132.23.
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Bourse ends steady despite foreign outflows
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