Secondary market bond yields rise for the first time in eight sessions

• Liquidity dips to a five week low

 

The decreasing trend in secondary market bond yields witnessed over the last eight trading sessions came to an halt yesterday, as yields were seen increasing across the yield curve. Selling interest on the four year maturity of 15.08.2018 saw its yields increase to a daily high of 7.15% against its opening low of 7.08%, the five year maturity of 01.07.2019 to 7.15% against 7.10%, the seven year maturity of 01.05.2021 to 7.75% against 7.65% and the eight year maturity of 01.07.2022 to 7.95% against 7.88%. In addition, the nine year maturity of 01.01.2024 was seen changing hands at 8.00% while the three year maturity of 15.05.2017 was quoted at levels of 6.85/95. In secondary bill markets, the 182 day bill was quoted at 5.80/90 while November 2015 bills were quoted at levels of 5.97/03.
In money markets, liquidity was seen dipping to a five week low of Rs 1.74 billion yesterday as a total of Rs 40 billion was mopped up through two term repo auctions for 56 days and 77 days at weighted averages of 6.07% and 6.11% respectively, value today. However, overnight call money and repo was seen remaining steady to average 6.01% and 5.52% respectively.

 

 
Rupee forward steady for a fourth consecutive day

In Forex markets, the rate on spot next-next contracts continued to remain stagnant at Rs 131.99/132.01 for a fourth consecutive day in the absence of spot and spot next contracts. The total USD/LKR traded volume for the 17th of December 2014 was at US $ 32.60 million. Some of the forward dollar rates that prevailed in the market were 1 Month – 132.55; 3 Months – 133.43 and 6 Months – 134.60.