Bond yields decline in active trading

• Rupee dips to Rs. 303.00

The secondary bond market remained active at the start of a new trading week as yields were seen decreasing further yesterday. The liquid maturities of 15.05.26, 01.05.27 and 15.09.27 dipped to intraday lows of 24.30%, 22.90% and 22.95% respectively against its previous day’s closing level of 24.50/75 and 23.20/40 each. In addition, trades were reported on the 01.07.25 and 15.01.28 maturities at levels of 26.00% and 22.25% respectively as well. The total secondary market Treasury bond/bill transacted volume for 9 June 2023 was Rs. 32.70 billion. In money markets, the weighted average rates on overnight call money and REPO stood at 13.93% and 14.00% respectively as the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for a volume of Rs. 38.40 billion at weighted average rate of 13.48%. An amount of Rs. 89.61 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 14.00%.

Furthermore, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of 28-day reverse repo auction for a volume of Rs. 2.5 billion at weighted average rate of 16.80%, valued today.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts depreciated further to an intraday low of Rs. 303.00 yesterday to close the day at Rs. 300/303 on the back of demand for the green back. This was in comparison to its Friday’s closing of Rs. 297.50/298.00.

The total USD/LKR traded volume for 9 June was $ 62.05 million.

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