Bond yields decrease in moderate trading

Tuesday, 24 January 2023 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The start of a fresh trading week saw secondary market bond yields decreasing yesterday on the back of moderate activity.

The existing bullish sentiment was given a boost by China’s debt restructuring assurances, leading to yields decreasing on the liquid maturities of 15.05.26 and 15.09.27 to intraday lows of 28.50% and 28.10% respectively against its previous day’s closing levels of 29.20/25 and 28.95/10.

However, profit taking from these levels led to yields increasing once again to highs of 29.00% and 28.40% respectively on the said two maturities. In addition, maturities of 01.05.24 and 15.01.25 traded at levels of 30.75% to 31.20% and 30.75% respectively as well.

Meanwhile, the National Consumer Price Index (NCPI) or inflation for the month of December was seen decreasing to 59.2% on its point to point as against 65.0% recorded in November while its annualised rate increased to 50.4% from 46.7%.

The total secondary market Treasury bond/bill transacted volume for 20th January 2023 was Rs.17.75 billion.

In money markets, the weighted average rates on overnight call money and repo stood at 15.40% and 15.50% respectively as the net liquidity in the system stood at a surplus of Rs. 6.73 billion yesterday.

An amount of Rs. 173.20 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 166.47 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 15.50%.

Forex Market

In the Forex market, the middle rate for USD/LKR spot contracts was recorded at Rs. 362.16 yesterday against last Friday’s Rs. 362.1694.

The total USD/LKR traded volume for 20th January was $ 83.86 million.

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