Bond market at a standstill

By Wealth Trust Securities

The new trading week commenced on a lethargic note, continuing the same sentiment witnessed over the previous week as the secondary bond market was at a standstill. 

Limited trades were seen on the 15.12.22, 01.09.23, 2024’s (15.09.24 and 01.12.24) and 15.05.30 maturities at levels of 5.75%, 5.99%, 6.44%, 6.48% and 7.78% respectively while on the very short end of the curve, July 2021 bills changed hands at 4.75% while the 15.12.21 bond changed hands at 5.00%.

This was ahead of today’s Treasury bill auction, conducted a day prior due to a shortened trading week. Rs. 40 billion will be on offer, consisting of Rs. 9 billion on the 91 day, Rs.12 billion on the 182 day and a further Rs. 19 billion on the 364 day maturities. The stipulated cut off rates was published at 4.67%, 4.78% and 5.03% on the 91, 182 and 364 day maturities respectively.

The total secondary market Treasury bond/bill transacted volumes for 18 December was Rs.7.15 billion.   

In the money market, the overnight surplus liquidity and weighted average rates on overnight call money and repo was registered at Rs. 213.92 billion, 4.55% and 4.59% respectively.

Rupee dips

 In the Forex market, spot next contracts in the absence of spot contracts was seen closing the day lower at Rs. 188.80/30 in comparison to its previous day’s closing of Rs. 188.10/30 on the back of buying interest by banks.

The total USD/LKR traded volume for 18 December was $ 54.25 million.

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