Selling interest in the morning hours of trading saw yields on the liquid maturities of 01.06.2018, 01.07.2019, 15.09.2019, 01.08.2021 and 01.09.2023 increase to intraday highs of 7.95%, 8.20%, 8.25%, 8.65% and 8.85% respectively. However, considerable buying interest from this point onwards saw yields dip to hit intraday lows of 7.92%, 8.10%, 8.08%, 8.52% and 8.74%.
Meanwhile, today’s bond auctions will have on offer of Rs. 5 billion each on a 4.01-year maturity of 1 July 2019 and a 6.02-year maturity of 1 August 2021. In secondary bill markets, November 2015 bills were quoted at levels of 6.10/15.
Meanwhile, in money markets, overnight call money and repo rates remained steady to average 6.12% and 6.04% respectively as surplus liquidity remained high at Rs. 119.54 b yesterday.
Rupee remains steady
The USD/LKR rate on its active one-month and two-month forward contracts remained mostly unchanged to close the day at levels of Rs. 134.70/90 and 135.60/80 as markets were at equilibrium. The total USD/LKR traded volume for 8 May was at $ 46.50 million. Some of the forward dollar rates that prevailed in the market were 3 months - 136.20/30 and 6 months - 137.90/10.
Courtesy: Daily Financial Times 12 May 215