Bond market sentiment turns negative with fresh selling interest

By Wealth Trust Securities

The fresh trading week commenced on a negative note yesterday, with renewed selling interest across the yield curve, resulting in an overall increase in yields. 

The liquid maturities of 15.12.22, 2024’s (i.e. 15.09.24 and 01.12.24) and 01.05.25 increased to intraday highs of 5.50%, 6.50%, 6.55% and 6.90% respectively, when compared with the previous closing levels of 5.44/50, 6.38/45, 6.45/50 and 6.60/70. 

Furthermore, the 01.05.21, 01.08.21, 01.10.22, 15.01.23, 01.10.23, 01.01.24, 15.06.24, 15.10.27 and 15.05.30 maturities were seen changing hands at levels of 4.67%, 4.80%, 5.43%, 5.53% to 5.55%,  5.90% to 5.95%, 6.20%, 6.41%, 7.23% and 7.75%.

The total secondary market Treasury bond/bill transacted volumes for 5 February was Rs. 8.50 billion.   

In the money market, weighted average rates on overnight call money and repos remained mostly unchanged at 4.55% each with the net surplus liquidity increasing marginally to Rs. 128.87 billion. 

Rupee depreciates marginally  

In the Forex market, the USD/LKR rate on spot contracts was seen trading within a range of Rs. 194.30 to Rs. 194.40 before closing the day at Rs. 194.50/195.50 against its previous day’s closing level of Rs. 193.50/194.50. 

The total USD/LKR traded volume for 5 February was $ 30.60 million.   

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