Bond market at a standstill ahead of T-bond auctions

By Wealth Trust Securities

The secondary bond market was at a complete standstill yesterday at the start of a new trading week and ahead of two Treasury bond auctions. 

The Treasury bond auctions due today will see a total volume of Rs. 40 billion on offer, consisting of Rs. 15 billion of a new 01.07.2025 maturity and Rs. 25 billion of a 15.05.2031 maturity.

The bond auctions conducted on 10 August saw the 15.07.29 maturity record a weighted average of 26.91% with an amount of Rs. 16.96 billion been accepted in successful bids against an offered amount of Rs. 20 billion. However, all bids received for the 01.06.2025 maturity were rejected.

The total secondary market Treasury bond/bill transacted volume for 26 August was Rs. 5.30 billion.   

In money markets, the weighted average rates on overnight REPO stood at 15.50% while an amount of Rs. 790.54 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. The net liquidity deficit stood at Rs. 476.92 billion yesterday as an amount of Rs. 313.63 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50%. No Call money transactions were reported.

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts was at Rs. 361.17 yesterday against its Fridays closing level of Rs. 361.40.

The total USD/LKR traded volume for 26 August 2022 was $ 17.80 million.  

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