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Saturday Nov 30, 2024
Monday, 20 March 2023 02:08 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The trading activity in the secondary bond market moderated during the week ending 17 March, while yields decreased marginally, week on week.
The limited activity was seen on the liquid maturities of 01.07.25 and 2027s (i.e., 01.05.27 and 15.09.27) at levels of 31.10% to 32.00% and 28.00% to 28.40% respectively. In addition, maturities of 01.05.24 and 15.07.29 were seen changing hands at levels of 30.75% to 30.85% and 26.00% respectively.
Nevertheless, the positive momentum witnessed at the weekly Treasury bill auctions continued, as weighted average rates tumbled by 81, 43 and 51 basis points on the 91-day, 182-day and 364-day maturities respectively. The total offered amount of Rs. 120 billion was fully subscribed at its 1st phase of the auction while a further amount of Rs. 30 billion was taken at its 2nd phase.
Furthermore, the offered amount of Rs. 110 billion on the 15.09.2027 maturity was fully accepted at its 1st phase of the T-bond auction conducted on Monday at a weighted average rate of 28.11% while a further amount of Rs. 8.95 billion was taken at its direct issuance window. However, only an amount of Rs. 0.44 billion was accepted on the 15.11.2024 maturity against its offered amount of Rs. 70 billion at a weighted average rate of 29.99%.
In the secondary bill market, June, July and September 2023 maturities traded at weekly lows of 25.75% to 26.60%, following the auction.
The foreign holding in rupee bonds recorded an increase of Rs. 16.38 billion for the week ending 15 March while the daily secondary market Treasury bond/bill transacted volumes for the first four trading days of the week averaged Rs. 58.91 billion.
In money markets, the weighted average rates of overnight call money and repo transactions carried out during the week was 15.49% and 15.50% respectively while the total outstanding liquidity stood at a surplus of Rs. 50.43 billion by the end of the week against its previous week’s figure of Rs. 98.43 billion.
The CBSL’s holding of Government Securities was registered at Rs. 2,701.99 billion against its previous week’s of Rs. 2,603.60 billion. In the forex market, the USD/LKR rate on spot contacts was seen depreciating during the week to close the week at Rs. 337.00/345.00 against its previous week’s closing levels of Rs. 320.00/323.00 subsequent to trading within a weekly high of Rs. 323.00 to a low of Rs. 340.00. The daily USD/LKR average traded volume for the first four days of the week stood at $ 47.73 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
