Bonds market remains dull

By Wealth Trust Securities 

The activity in the secondary bond market remained dull during trading on Tuesday as a majority of market participants opted to be on the sidelines. 

Trades were witnessed on the 15.01.27 and 01.09.28 maturities at 11.13% and 11.58% respectively. Nevertheless, continued demand for Treasury bills saw January and February 2022 maturities changing hands at levels of 7.55% to 7.90% in the secondary market. 

The total secondary market Treasury bond/bill transacted volume for 2 November was Rs.5.83 billion.

In money markets, the weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.93% and 5.94% respectively while the net liquidity deficit decreased to Rs. 165.11 billion on Tuesday. An amount of Rs. 82 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5% against an amount of Rs. 291 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6%.

In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 21.90 billion and Rs. 22 billion by way of overnight and seven-day repo auctions at weighted average rates of 5.99% each. 

 USD/LKR   

 In the Forex market, the USD/LKR rate on spot contracts continued to trade within the range of Rs. 202.97 to Rs. 203.00 yesterday. 

The total USD/LKR traded volume for 2 November was $ 32.40 million.   

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