Bond yields resume downward trend

• Inflation continues to move higher

By Wealth Trust Securities

The secondary bond market rates resumed its downward trend yesterday as the liquid maturities of 01.06.25 and 15.07.29 hit intraday lows of 24.90% and 24.80% respectively against its previous day’s closing levels of 25.50/27.00 and 25.50/27.00. In addition, 15.01.28 was seen trading at a low of 24.50% as well.

The National Consumer Price Index (NCPI; Base 2013=100) for the month of June increased to a high of 58.9% on its point to point against its previous month’s figure of 45.3%. The annual average also increased to a high of 20.8% against 16.3%.

The total secondary market Treasury bond/bill transacted volume for 20 July was Rs. 46.21 billion.   

In money markets, the weighted average rates on overnight Call money and REPO stood at 15.50% each while the net liquidity deficit stood at Rs. 436.10 billion yesterday. An amount of Rs. 286.88 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% while an amount of Rs. 722.99 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%.

Forex Market

 In the Forex market, the middle rate for USD/LKR spot contracts was at Rs. 361.67 yesterday against its previous day’s closing level of Rs. 361.87.

The total USD/LKR traded volume for 20 July was $ 10.25 million.  

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