Activity remains moderate ahead of T-Bond auctions

By Wealth Trust Securities

The fresh trading week commenced on a dull note as activity in the secondary bond market continued at a moderate pace yesterday. Limited trades of the 2022’s (i.e. 01.10.22 and 15.11.22), 15.01.23, 01.05.25 and 15.01.26 maturities took place at levels of 5.62% to 5.65%, 5.78%, 7.00% and 7.32% to 7.34% respectively.

Today’s auction will have on offer a total amount of Rs. 25 billion, consisting of Rs.15 billion of the 15.11.2023 maturity and Rs. 10 billion of the 01.07.2028 maturity. The maximum yields rate for acceptance for the said maturities was published at 6.40% and 8.05% respectively. The weighted average yields at the bond auctions conducted on 12 May 2021 were 7.04% and 7.97% for the maturities of 01.05.2025 and 01.05.2028 respectively.

The Colombo Consumer Price Index (CCPI) was seen increasing once again to register 4.5% on its point to point for the month of May against 3.9% recorded in April. The annualised average remained steady at 3.9%.

The total secondary market Treasury bond/bill transacted volume for 28 May 2021 was Rs. 4.47 billion.  

In money markets, the weighted average rates on call money and repo was registered at 4.66% and 4.74% respectively as an amount of Rs. 131.48 billion was deposited at Central Banks SDFR of 4.50%. However, the net liquidity surplus was recorded at Rs. 116.46 billion yesterday as an amount of Rs. 15.02 billion was withdrawn from Central Banks SLFR of 5.50%.

USD/LKR  

In Forex markets, the overall market continued to remain inactive.

The total USD/LKR traded volume for 28 May 2021 was $ 19.90 million.  

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)