Bond market activity picks up marginally

Thursday, 29 October 2020 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market picked up yesterday but mainly surrounded on the 01.02.26 and 15.10.27 maturities as it was seen changing hands within the range of 6.55% to 6.64% and 6.98% to 6.99% respectively. In addition, 01.09.23 was traded at 5.95% while on the very short end of the yield curve; 15.10.21 was traded at 4.9%.

In secondary bills, continued demand for September and October 2021 bills saw it change hands at levels of 4.83% to 4.84% and 4.92% respectively while February 2021 changed hands at 4.68%.

The total secondary market Treasury bond/bill transacted volume for 27 October was Rs. 12.81 billion.

In the money market, overnight surplus liquidity was recorded at Rs. 191.26 billion yesterday while call money and repo averaged 4.53% and 4.57% respectively. The DOD (Domestic Operations Department) of Central Bank injected an amount of Rs.5.00 billion by way of a 14 day reverse repo auction at a weighted average rate of 4.55%, valued today.

Rupee appreciates marginally

The dollar against the rupee or USD/LKR rate on spot contracts was seen appreciating marginally yesterday to close the day at Rs. 184.25/35 against its previous day’s closing of Rs. 184.30/40.

The total USD/LKR traded volume for 27 October was $ 81.76 million.

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