Bond market yields steady on the back of moderate activity

By Wealth Trust Securities

The secondary bond market yields remained steady yesterday while activity picked up to a moderate level, ahead of today’s Treasury bill auction. The trades witnessed were on the 15.12.22, 15.07.23, 15.11.23, 01.12.24, 15.01.26 and 01.05.28 maturities at levels of 5.74%, 6.10%, 6.28% to 6.29%, 6.68%, 7.30% to 7.32% and 8.00% respectively, while June and July bill maturities changed hands at 4.95% to 5.00%.

At today’s bill auction, a total volume of Rs. 50 billion will be on offer, Rs. 1 billion below its previous weeks total offered volume. This will be consists of Rs. 10 billion on the 91 day, Rs. 20 billion on the 182 day and Rs. 20 billion on the 364 day maturities. The stipulated cut off rate on the 364 day maturity was unchanged at 5.21% for a third consecutive week while the maximum yield rates of the 91 day and 182 day maturities will be decided below the level of the 364 day maturity at the auction. 

At last week’s auction, the total accepted volume remained mostly unchanged at 61.91% of its total offered volume while the weighted average rate on the 91 day bill increased by 01 basis point to 5.16%. The weighted average rates on the 182 day and 364 day maturities remained steady at 5.17% and 5.21% respectively.

The total secondary market Treasury bond/bill transacted volume for 14 June was Rs. 3.19 billion.   

In money markets, the weighted average rates on call money and repo was registered at 4.80% each as an amount of Rs. 119.14 billion was deposited at Central Banks SDFR of 4.50% yesterday. Nevertheless, the net liquidity surplus stood at Rs. 83.07 billion as an amount of Rs. 36.07 billion been withdrawn from Central Banks SLFR of 5.50%.

USD/LKR   

The Forex market continued to remain inactive yesterday. 

The total USD/LKR traded volume for 14 June was $ 62.51 million.   

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