Bond yields seesaw at start of trading week

• Bond auctions to recommence after lapse of 4 months

By Wealth Trust Securities

 The start of the trading week saw secondary market bond yields fluctuate amidst high activity.  The liquid 15.09.27 maturities traded within the range of 14.40% to 15.50%. In addition, maturities of 2025’s (i.e., 15.01.25 & 01.06.25), 15.05.26, 15.01.28 and 01.07.32 changed hands at levels of 15.00% to 15.50%, 15.50%, 14.00% to 14.51% and 13.10% to 14.50% respectively as well. In the secondary bills market, July, August, September, October and December 2024 maturities traded at levels of 15.50% to 20.00%, 16.50% to 19.75%, 17.25%, 17.50% to 20.00% and 17.00% respectively.

 The Primary Treasury bond auctions are due to commence from 13 Thursday July after a lapse of around 4 months. The previous bond auction was conducted on 13 March 2023.

The total secondary market Treasury bond/bill transacted volume for 7 July 2023 was Rs.24.64 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight and 7-day reverse repo auctions for a total volume of Rs.94.00 billion at weighted average rates of 11.58% and 12.00% respectively while an amount of Rs.76.85 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00% against an amount of Rs.3.07 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 11.00%. The weighted average rates on overnight call money and repo were registered at 11.83% and 11.80% respectively.

Forex Market

In the Forex market, the USD/LKR spot contracts closed the day at Rs.312.00/313.50 yesterday against its previous day’s closing level of Rs.312.00/313.00, subsequent to trading within the range of Rs.312.50 to Rs.313.00.

The total USD/LKR traded volume for 7 July was $ 30 million. 

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