Bond market activity moderates ahead of weekly bill auction

By Wealth Trust Securities

Activity in the secondary bond market moderated on Monday, ahead of today’s weekly Treasury bill auction, where a total amount of Rs. 23.5 billion will be on offer, consisting of Rs. 3 billion on the 91 day, Rs. 4 billion on the 182 day and Rs. 16.5 billion on the 364 day bill maturities. At last week’s auction, the weighted average yields decreased across the boards by 08, 11 and 05 basis points respectively to 8.09%, 8.21% and 8.54%. 

In the secondary bond market, limited volumes of the 15.10.21 and 15.07.23 maturities were seen changing hands at levels of 8.75% and 9.55% respectively. 

The total secondary market Treasury bond/bill transacted volumes for 12 July 2019 was Rs. 6.92 billion. In money markets, the overnight call money and repo rates averaged 7.83% and 7.87% respectively, as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 7.86 billion by way of an overnight repo auction at a weighted average rate of 7.79%. The overnight net liquidity surplus increased to Rs. 29.04 billion. 

 Rupee loses 

The USD/LKR rate on spot contracts depreciated on Monday to close the day at Rs. 175.65/75 against its previous day’s closing levels of Rs. 175.45/55, on the back of importer demand.

The total USD/LKR traded volume for 12 July 2019 was $ 45.29 million

Some of the forward USD/LKR rates that prevailed in the market were one month – 176.30/50; three months – 177.60/90 and six months – 179.60/00.