Bond yields reduce on two-way quotes

• Activity moderates ahead of T-bond auctions

By Wealth Trust Securities

The activity in the secondary bond market moderated yesterday while yields on its two-way quotes were seen reducing yesterday. Only the 01.07.32 maturity changed hands at levels of 28.50% to 28.55%.

Today’s bond auctions will have on offer a total volume of Rs. 50 billion, consisting of Rs. 25 billion each on two new maturities of 01.05.2024 and 15.01.2028 carrying coupon rates of 22.50% each. 

At the last bond auctions conducted on 11 November 2022, the 01.07.32 maturity was issued at a weighted average rate of 30.86% with its offered amount of Rs. 40.00 billion being accepted at its 1st phase. 

A further Rs. 4.69 billion was also issued under its direct issuance window. However, only an amount of Rs. 9.04 billion of the 15.11.24 maturity was accepted at a weighted average rate of 33.01% against an offered amount Rs. 50 billion while all bids received on the 01.05.27 maturity were rejected for its offered amount of Rs. 40 billion.

The total secondary market Treasury bond/bill transacted volume for 25 November 2022 was Rs. 10.95 billion.   

In money markets, the net liquidity deficit increased to Rs. 253.48 billion yesterday as an amount of Rs. 334.73 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 588.20 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 15.50%. The weighted average rate on overnight repo was registered at 15.50% while No transactions were report on overnight Call money.



Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 363.00 yesterday.

The total USD/LKR traded volume for 25 November was $ 26.50 million.   

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