Bond market at a standstill ahead of weekly auction

By Wealth Trust Securities

The activity in the secondary bond market was at a standstill yesterday, as market participants were seen on the sidelines due to the reading of the 2021 budget and ahead of today’s weekly Treasury bill auction. Two maturities recorded trades, with the 15.09.24 yield increasing to 6.43%, while on the very short end of the yield curve, 01.08.21 changed hands at 4.84% to 4.85%.

Today’s bill auction will see Rs. 40 billion on offer once again, consisting of Rs. 8 billion on the 91-day, Rs. 13 billion on the 182-day and a further Rs. 19 billion on the 364-day maturities. The stipulated cut-off rates were published at 4.62%, 4.73% and 4.98% on the 91, 182 and 364-day maturities respectively, marginally above its previous weeks weighted averages of 4.60%, 4.70% and 4.97%.

The total secondary market Treasury bond/bill transacted volumes for 16 November was Rs. 3.6 billion.   

The overnight surplus liquidity in the money market stood at Rs. 180.55 billion yesterday, while call money and repo averaged 4.54% and 4.61% respectively.

Rupee appreciates

The USD/LKR rate on spot next contracts closed the day stronger at Rs. 185.00/30 yesterday, against its previous day’s closing of Rs. 185.30/50 on the back of selling interest by banks.

The total USD/LKR traded volume for 16 November was $ 79.58 million.   

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