Bond market at a standstill; yields steady ahead of weekly auction

Wednesday, 9 June 2021 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The activity in the secondary bond market was at a standstill yesterday while yields remained steady ahead of today’s Treasury bill auction. Limited trade was witnessed on the maturities of 15.12.22, 15.03.25 and 01.08.26, at levels of 5.75% to 5.90%, 6.96% and 7.45% respectively.

At today’s bill auction, Rs. 51 billion will be on offer, consisting of Rs. 10 billion on the 91-day, Rs. 23 billion on the 182-day and Rs. 18 billion on the 364-day maturities. At last week’s auction, the weighted average rate on the 91-day bill increased by 2 basis point to 5.13%, while weighted average rates on the 182-day and 364-day maturities increased by 3 basis points each to 5.17% and 5.21% respectively.

The stipulated cut off rate on the 364-day maturity remained steady at 5.21% while the maximum yield rates of the 91-day and 182-day maturities will be decided below the level of the 364-day maturity at the auction.

The total secondary market Treasury bond/bill transacted volume for 7 June was Rs. 3.25 billion.

The weighted average rates on overnight call money and repo remained mostly unchanged at 4.76% and 4.75% respectively as the overnight net surplus liquidity increased once again to Rs. 111.42 billion yesterday.

USD/LKR

In Forex markets, the USD/LKR rate on cash to one month forward contracts saw continued buying interest at Rs. 199.99 while overall market continued to remain inactive.

The total USD/LKR traded volume for 7 June was $ 32 million.

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

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.