Monday Sep 23, 2024
Monday Sep 23, 2024
Monday, 17 May 2021 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The positive sentiment in the bond market continued during the shortened trading week ending 13 May 2021, as secondary market yields declined further to reflect a marginal downward shift of the overall yield curve on a week on week basis.
Yields of the liquid maturities of 2022’s (i.e. 01.10.22 and 15.12.22), 2023’s (i.e. 01.09.23 and 15.11.23), 01.12.24 as well as the 01.05.25 and 01.08.26 hit weekly lows of 5.60%, 5.62%, 6.21%, 6.24%, 6.65%, 6.95% and 7.54% respectively against its previous weeks closing levels of 5.63/70, 5.65/70, 6.20/30, 6.30/35, 6.70/72, 6.90/15 and 7.58/65.
In addition, 15.11.22, 15.01.23, 15.03.23, 01.10.23, 15.12.23, 15.10.27 and 15.05.30 maturities were seen changing hands at levels of 5.62%, 5.70% to 5.73%, 5.95%, 6.25%, 6.30% to 6.31%, 7.70% and 8.10% respectively as well. Furthermore, buying interest of T-bills in the secondary market resulted in the July, August, October and November 2021 bills changing hands within the range of 5.04% to 5.12%.
The primary auction conducted during the week produced mixed results as the total accepted amount at the weekly T-bill auction decreased to a five week low of 44.70%. Nevertheless, the Treasury bond auctions conducted recorded a strong outcome as the two maturities consisting of 01.05.2025 and 01.05.2028 registered impressive accepted ratios of 100% and 95% respectively.
Foreign investors were seen as net sellers of Rupee bonds for a second consecutive week, recording an outflow of Rs. 180.96 million for the week ending 12 May 2021 and while the daily secondary market Treasury bond/bill transacted volumes for the first three trading days of the week averaged Rs. 9.38 billion.
In money markets, the total outstanding liquidity surplus decreased further to Rs. 130.56 billion against its previous weeks Rs. 135.17 billion while the weighted average rates on overnight call money and repo remained steady to average 4.66% and 4.69% respectively for the week. The CBSL’s holding of Govt. Securities increased by Rs. 3.65 billion to Rs. 874.02 billion.
USD/LKR
In the Forex market, USD/LKR rate on spot contracts traded at levels of Rs. 199.90 to Rs. 199.95 during the week.
The daily USD/LKR average traded volume for the first three days of the week stood at $ 66.72 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
