Bond market at a standstill

• Weekly weighted averages steady

By Wealth Trust Securities Ltd 

The weighted average rates remained steady across the board at 23.00%, 19.49% and 16.99% on the 91-day, 182-day and 364-day maturities respectively at its weekly Treasury bills auction held yesterday. However, the auction went undersubscribed at its 1st phase as only Rs. 55.43 billion was accepted in total against a total offered volume of Rs. 130 billion.

The 2nd phase of the auction will be opened on three maturities at its weighted average rates until close of business of the day prior to settlement (i.e., 4.00 pm on 28.06.23). Given below are the details of the auction,

Meanwhile, activity in the secondary bond market remained at a standstill yesterday as most market participants continued to be on the sidelines. Limited trades were seen on the 15.09.27 and 01.07.32 maturities at levels of 23.70% to 23.75% and 20.32% to 21% respectively. In secondary bills, November and December 2023 maturities changed hands at levels of 20.50% to 24% and 19.50% to 20.50% respectively.

The total secondary market Treasury bond/bill transacted volume for 26 June 2023 was Rs. 9.47 billion.

In money markets, the weighted average rates on overnight call money and repo were registered at 13.85% and 14.00% respectively as the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight and 7-day reverse repo auctions for a total volume of Rs. 94.45 billion at weighted average rates of 13.67% and 14% respectively. Further an amount of Rs. 117.34 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 14%.

Forex Market 

In the Forex market, In the Forex market, the USD/LKR rate on spot contracts traded within the range of Rs. 308.25 to Rs. 308.50 yesterday before closing the day broadly steady at Rs. 308.50/310.00.  

The total USD/LKR traded volume for 26 June was $ 51.15 million. 

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