Bond market trades within a narrow range

• CCPI decreases
• LKR appreciates further

By Wealth Trust Securities

The secondary bond market was seen trading within a narrow range on Wednesday as yields picked up further marginally. 

The liquid maturities of 2023s (i.e. 15.01.23, 15.07.23 and 01.10.23), 2024s (i.e. 15.06.24 and 15.09.24), 01.05.25 and 01.02.26 changed hands at levels of 5.90%, 6.15% each, 6.45%, 6.47%, 6.78% to 6.81% and 6.95% to 7.00% respectively against its previous day’s closing level of 5.80/00, 6.00/20, 6.05/20, 6.40/45, 6.40/50, 6.70/75 and 6.85/00. 

In the secondary bill market, the 27 November 2020 and 10 September 2021 maturities traded at level of 4.65% and 5.00% to 5.05% respectively.

Inflation or the Colombo Consumer Price Index (CCPI) for the month of September was seen decreasing further to 4.00% on its point to point while its annual average too decreased to 4.7% from 4.1% and 4.8% respectively.

The total secondary market Treasury bond/bill transacted volumes for 29 September was Rs. 8.30 billion.   

In the money market, the weighted average rates of overnight call money and Repos were recorded at 4.53% and 4.58% respectively yesterday as the DOD (Domestic Operations Department) of Central Bank further injected an amount of Rs. 20 billion by way of a 14-day reverse repo auction at a weighted average rate of 4.54%, valued today. The overnight net liquidity surplus stood at Rs. 187.03 billion.

LKR appreciates further

In the Forex market, USD/LKR rate on spot contracts was seen appreciating further yesterday to close the day at Rs. 184.90/00 against its previous day’s closing level of Rs. 185.10/20 on the back of selling interest by banks.

The total USD/LKR traded volume for 29 September was $ 162.04 million.   

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