Saturday Sep 28, 2024
Saturday Sep 28, 2024
Tuesday, 28 November 2023 00:58 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market commenced the week with subdued activity ahead of the upcoming bond auctions, with yields holding somewhat steady. Accordingly, limited trades were seen on the maturities of 01.06.26, two 27’s (15.01.27 and 01.05.27) and 01.07.28 within the ranges of 14.30% to 14.35%, 14.42% to 14.60%, and 14.57% respectively.
Meanwhile, in secondary market bills, April/May 2024 maturities were seen trading at 14.50%.
The Central Bank of Sri Lanka (CBSL) is due to conduct a round of Treasury bond auctions today 28 November. The auctions will see a total offered amount of Rs. 45 billion. The details of the upcoming auction are given below. For context, the previous round of bond auctions, which incidentally had the largest ever offered amount in Sri Lanka’s history held on 13 November, went undersubscribed. Only 29.29% or Rs. 73.22 billion was raised out of the total offered amount of Rs. 250 billion at its 1st and 2nd phases. From the maturities on offer, demand was seen for the shorter tenure 15.01.27 maturity, which saw its offered amount of Rs. 60 billion been raised at a weighted average yield of 15.22%. However, the 15.03.28 maturity, with the highest offered amount of Rs. 110 billion, and the 15.03.31 maturity, with Rs. 80 billion on offer, went significantly undersubscribed, with only Rs. 4.56 billion and Rs. 8.67 billion accepted, at weighted average yields of 14.52% and 13.56%, respectively.
The total secondary market Treasury bond/bill transacted volume for 24 November 2023 was Rs. 16.32 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 9.28% and 9.68% respectively while the net liquidity stood at a deficit of Rs. 60.57 billion yesterday.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight Repo auction for Rs. 20.83 billion at the weighted average rates of 9.31%. An amount of Rs. 41.25 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 10.00%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day weaker at Rs. 328.90/329.40 yesterday against its previous day’s closing level of Rs. 328.70/328.80.
The total USD/LKR traded volume for 24 November was $ 59.15 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
