Bond market trades within a steady range during the week

• Positive trend in weekly bill auctions continue
• Money market liquidity increases 
• Rupee dips during the week

By Wealth Trust Securities

The secondary bond market saw trades taking place within a steady range during the week ending 23 April as activity picked up towards the latter part of the week. 

The maturities of 2022s (i.e. 15.11.22 and 15.12.22), 15.01.23, 15.03.23, 2023s (i.e. 15.03.23, 15.07.23, 15.11.23), 2024s (i.e.15.09.24 & 01.12.24), 15.05.30 and 15.09.34 changed hands at levels of 6.00%, 6.003% to 6.08%, 6.22%, 6.45% to 6.60%, 6.75% to 6.85%, 7.95% and 8.35% respectively. 

In the secondary bill market, July and October maturities were traded at a level of 5.14% to 5.20%.  

Meanwhile, the total accepted amount at the weekly Treasury bill auction was seen increasing further for a seventh consecutive week to Rs. 36.12 billion while the foreign holding in rupee bonds stood at Rs. 6.20 billion for the week ending 21 April.  

The daily secondary market Treasury bond/bill transacted volumes for the first four trading days of the week averaged Rs. 11.67 billion.  

In money markets, the total outstanding liquidity surplus was seen increasing during the week to a high of Rs. 149.00 billion against its previous weeks closing of Rs. 80.79 billion while CBSL’s holding of Gov. Security’s decreased further to Rs. 893.85 billion against its previous week of Rs. 898.28 billion. 

The weighted average rates on overnight call money and repo remained mostly unchanged to average 4.65% and 4.67% respectively for the week. 

 USD/LKR

In Forex markets, USD/LKR rate on the more active one month forward contracts were seen closing the week at Rs. 202.00/204.00 against its previous week’s spot closing of Rs. 192.00/193.50.  

The daily USD/LKR average traded volume for the first four days of the week stood at $ 64.02 million.  

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