Bond yields close broadly steady

By Wealth Trust Securities

The start of a new trading week saw secondary market bond yields closing the day mostly unchanged, subsequent to trading within a narrow range. Activity was mainly witnessed on the 15.09.27 maturity within the range of 24.70% to 24.90%. In addition, trades were reported on the 01.05.27 and 15.01.28 maturities at levels of 25.00% and 23.50% respectively.

The total secondary market Treasury bond/bill transacted volume for 2 June 2023 was Rs. 10.71 billion.

In money markets, overnight call money and repo averaged 14.00% each as the DOD (Domestic Operations Department) of Central Bank was seen injecting an amount of Rs. 17.7 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 13.50% yesterday. The net liquidity shortfall stood at Rs. 112.80 billion yesterday as a further an amount of Rs. 109.80 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 14.00% against an amount of Rs. 14.70 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 13.00%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts were seen closing the day at Rs. 290.50/291.50 against its previous day’s closing level of Rs. 291.75/292.50.

The total USD/LKR traded volume for 2 June was $ 14.60 million.

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