Bond market continues bullish rally; rupee reverses gains

Friday, 4 August 2023 00:40 - - {{hitsCtrl.values.hits}}

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for a total volume of Rs. 115.00 billion at weighted average rate of 11.60% while an amount of Rs.67.74 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%.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)