Balanced outcome at bond auctions

Friday, 13 November 2020 00:20 - - {{hitsCtrl.values.hits}}

Bond market activity remains moderate

By Wealth Trust Securities

The Treasury bond auctions conducted yesterday saw it record weighted averages just below its cut off rates while both maturities were seen progressing to its voluntary second phase of the auctions.

The 01.12.2024 and 15.08.2027 recorded weighted averages of 6.32% and 7.01% respectively just below its cut off rates of 6.33% and 7.02%. Nevertheless, only a total amount of Rs.48.75 billion was accepted against a total offered amount of Rs. 75 billion.

Activity in the secondary bond market remained moderate yesterday but spread across the yield curve. Limited trades were seen on the 2022s (i.e. 01.07.22 and 01.10.22), 15.12.23, 15.09.24, 01.02.26, 15.10.27 and 15.05.30 maturities at levels of 5.65%, 5.60%, 6.05%, 6.28% to 6.30%, 6.65%, 7.02% to 7.04% and 7.64% to 7.66% respectively.

On the short end of the yield curve, September 2021 Treasury bills and December 2021 Treasury bonds changed hands at 4.82% and 5.05% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 11 November was Rs. 12.14 billion.

In the money market, overnight surplus liquidity and weighted average rates on overnight call money and repo were registered at 147.07 billion, 4.54% and 4.58% respectively.

Rupee broadly steady

The USD/LKR rate on spot contracts closed the day broadly steady at Rs. 184.58/62 against its previous day’s closing levels of Rs. 184.55/60 on the back of an equilibrium market.

The total USD/LKR traded volume for 11 November was $ 80.26 million.

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

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