Bond Market activity moderates; Yields mostly unchanged

• Rupee up marginally 

By Wealth Trust Securities

The secondary bond market saw moderate activity with yields remaining broadly steady yesterday. Trades continued to be seen across the yield curve. The liquid maturities of the two 26s (15.05.26 and 01.08.26), 15.09.27, 01.07.28 and 15.05.30 were seen changing hands at levels of 14.75% to 14.90%, 14.75%, 14.75% to 14.80% and 14.40% respectively.

Meanwhile, in secondary market bills, January/February 2024 maturities were seen trading within the range of 15.10% to 15.20%, whereas, May 2024 maturities changed hands at 14.76% to 14.80% levels as well.

The total secondary market Treasury bond/bill transacted volume for 15 November 2023 was Rs.69.52 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 10.38% and 10.49% respectively while the net liquidity stood at a surplus of Rs.25.49 billion yesterday.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight auction and 28-day term reverse repo for LKR 40.24 billion and LKR 40.00 billion at the weighted average rates of 10.06% and 12.33% respectively. An amount of Rs.36.07 billion was withdrawn from Central Bank’s SLFR (Standard Lending Facility Rate) of 11.00% while an amount of Rs. 101.80 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 10.00%. 

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts closed the day marginally stronger at Rs.327.60/328.00 yesterday against its previous day’s closing level of Rs.328.70/328.80.

The total USD/LKR traded volume for 15 November was $ 50.75 million. 

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