Bond market remains active

• Rupee dips marginally

By Wealth trust Securities

The secondary bond market remained active yesterday as selling interest on the 2025 maturity saw its yield increase while buying interest on the rest of the yield curve kept its yields steady. The 01.07.25 maturity was traded from an intraday low of 15.75% to a high of 16.25% in comparison to its previous day’s closing level of 15.00/16.00 while the maturities of 15.05.26, 15.09.27, 01.05.28 and 15.05.30 traded at levels 15.40% to 15.55%, 15.25% to 15.60%, 15.00% to 15.15% and 14.80% to 15.00% respectively against its previous day’s closing level of 15.40/60, 15.25/15.40, 15.10/20 and 14.95/15.00. In secondary bills, December 2023 and May-June 2024 maturities changed hands at levels of 18.00% to 18.20% and 14.52% to 14.75% respectively. The total secondary market Treasury bond/bill transacted volume on 19 July 2023 was Rs.10.79 billion.

In money markets, 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Rs.119.85 billion at weighted average rates of 11.68% and 12.00% respectively while an amount of Rs.92.38 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. The net liquidity deficit stood at Rs.183.48 billion yesterday.

The weighted average rates on overnight call money and repo were registered at 11.57% and 12.00% respectively.

Forex Market

In the Forex market, the USD/LKR on spot contracts was seen depreciating yesterday to close the day at Rs.325.75/326.00 against its previous day’s closing level of Rs.323.50/325.00 on the back of buying interest by banks. The total USD/LKR traded volume for 19 July was US $ 11.60 million. 

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