Bond market activity centres on 2023 maturities as policy rates unchanged

By Wealth Trust Securities

The Central Bank of Sri Lanka was seen holding its policy rates on its Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) steady at 4.50% and 5.50% at its monetary policy announcement yesterday.

The activity in the secondary bond market continued to centre around the 2023 maturities yesterday. The 15.01.23, 15.03.23, 01.09.23 and 15.11.23 maturities were seen changing hands at levels of 5.63%, 5.83%, 6.06% to 6.07% and 6.18% to 6.23% respectively.

The total secondary market Treasury bond/bill transacted volume for 7 July was Rs. 30.82 billion.   

In money markets, the weighted average rates on overnight call money and repo remained steady at 4.93% and 4.97% respectively as the overnight net liquidity surplus was registered at Rs. 85.00 billion yesterday. An amount of Rs. 150.10 was deposited at Central Banks Standard Deposit Facility Rate (SDFR) of 4.50% against an amount of Rs. 65.10 billion been withdrawn from Central Banks Standard Lending Facility Rate (SLFR) of 5.50%.

USD/LKR   

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

The total USD/LKR traded volume for 7 July was $ 47.00 million.   

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