Bond market continues bullish rally; rupee reverses gains

By Wealth Trust Securities

The continuous demand for Treasury bonds across the yield curve in the secondary bond market persisted yesterday. This saw yields on the liquid two 25s (i.e 01.06.25/01.07.25), 15.05.26, 15.09.27, 01.05.28 and 15.05.30 maturities dipping further to intraday lows of 14.85%, 14.80%, 14.50%, 14.25%, 13.35% and 13.10% respectively. This is against its opening highs of 14.90%,15.00%,14.65%,14.45%,13.90%,13.50% respectively.

The total secondary market Treasury bond/bill transacted volume for 02nd August 2023 was Rs. 63.51 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight auction for a total volume of Rs. 115.00 billion at weighted average rate of 11.60% while an amount of Rs.67.74 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. The net liquidity deficit stood at Rs.167.95 billion yesterday.

The weighted average rates on overnight call money and repo were registered at 11.45% and 12.00% respectively.

Forex Market 

In the Forex market, the USD/LKR on spot contracts dipped to close the day at Rs.318.00/320.50 against its previous day’s closing level of Rs.314.50/315.00.

The total USD/LKR traded volume for 02nd August was $ 95.78 million.

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