Bond market yields decrease ahead of T-bill auction

By Wealth Trust Securities

The yields in the secondary bond market decreased yesterday on the back of renewed buying interest as activity increased as well. 

The yields on the liquid maturities of 01.08.24 and 15.06.27 hit intraday lows of 14.80% and 15.10% respectively against its previous days losing levels of 14.75/00 and 15.00/25. Furthermore, activity was witnessed on the 15.05.30 maturity at a level of 16.00% as well.

This is ahead of today’s bill auction, where in total an amount of Rs. 60 billion will be on offer, consisting of Rs. 20 billion each on the 91 day, 182 day and 364 day maturities. 

At last week’s auction, weighted average rates on all three maturities increased considerably to 10.29%, 10.48% and 10.66% respectively.

The total secondary market Treasury bond/bill transacted volume for 11 March was Rs. 22.19 billion.  In money markets, the weighted average rates on overnight Call money and REPO was at 7.48% and 7.50% respectively as an amount of Rs. 714.29 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 7.50%. 

The net liquidity deficit was registered at Rs. 626.17 billion yesterday as an amount of Rs. 88.12 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 6.50%.  

USD/LKR

The USD/LKR rate on spot contracts was seen closing the day at levels of Rs. 265/85 yesterday subsequent to trading within a range of Rs. 264.97 to Rs. 275.00.

The total USD/LKR traded volume for 11 March 2022 was $ 45.72 million.  

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