Bond market activity continues at a moderate pace

By Wealth Trust Securities

The activity in the secondary bond market remained moderated yesterday as the maturities of 15.12.23, 01.12.24 and 2027’s (i.e. 15.01.27 and 15.06.27) changed hands at levels of 9.50%, 10.00% to 10.05%, 11.30% to 11.40% and 11.51% to 11.52% respectively.

The National Consumer Price Index (NCPI) for the month of September reflected a further decrease for a second consecutive month to 6.2% on its point to point in comparison to its previous month’s figure 6.7%. The annual average remained steady at 5.5%.

The total secondary market Treasury bond/bill transacted volume for 18 October was Rs. 0.37 billion.   

In money markets, the weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.90% and 5.92% respectively while the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 25.00 billion and Rs. 20.00 billion by way of seven day and fourteen-day repo auctions respectively at a weighted average rate of 5.98% and 6.05%. 

The net liquidity deficit increased to Rs. 99.52 billion yesterday as an amount of Rs. 101.34 billion was deposited at Central Banks Standard Deposit Facility Rate (SDFR) of 5.00% against an amount of Rs. 225.86 billion withdrawn from Central Banks Standard Deposit Facility Rate (SLFR) of 6.00%.

USD/LKR   

The forex market remained inactive yesterday.

The total USD/LKR traded volume for 18 October was $ 22.40 million.   

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