Bond market activity moderates: yields reduce on two-way quotes

Friday, 18 March 2022 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The activity in the secondary bond market remained moderate on Tuesday ahead of a holiday mid-week. Limited trades were seen only on the 15.06.27 maturity at levels of 15.05% to 15.07% while two-way quotes across the yield curve were seen reducing towards the latter part of the day.

In secondary bills, June bills were seen changing hands within the range of 11.20% to 11.35%.

The total secondary market Treasury bond/bill transacted volume for 16 March was Rs. 45.52 billion.

In money markets, the overnight net liquidity deficit was registered at Rs. 562.81 billion yesterday as an amount of Rs. 90.53 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 6.50% against an amount of Rs. 653.33 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 7.50%. The weighted average rates on overnight Call money and REPO stood at 7.50% each.

Rupee broadly steady

The USD/LKR rate on spot contracts was seen trading within a range of Rs. 273.90 to Rs. 279.00 yesterday before closing the day at levels of Rs. 275/90 against its previous day’s closing levels of 265/90.

The total USD/LKR traded volume for 15 March 2022 was $ 46.40 million.

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