Election mood keeps bond market at bay

Friday, 20 September 2024 00:12 - - {{hitsCtrl.values.hits}}

Overnight liquidity turns positive once again; rupee dips further

By Wealth Trust Securities

Activity in the secondary bond market slowed yesterday with two-way quotes across the yield curve remaining broadly steady ahead of the Presidential election. Limited trades were witnessed on the two 2027’s (i.e. 01.05.27 &15.09.27) and 15.06.29 maturities at levels of 13.07% to 13.10% and 13.85% respectively.

In secondary bills market, November 2024, December 2024 and the latest 182-day bill changed hands at level of 10.25%, 10.40% to 10.75% and 11.00% respectively.

The total secondary market Treasury bond/bill transacted volume for 18 September 2024 was Rs. 75.87 billion.

In money markets, the net overnight money market liquidity reversed sharply to a surplus Rs. 34.66 billion yesterday against its previous day’s deficit of Rs. 31.81 billion. An amount Rs. 87.66 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25% against an amount of Rs. 12.42 billion been withdrawn from its SLFR (Standard Lending Facility Rate) of 9.25%. The weighted average rates on call money and repo stood at 8.62% and 8.82% respectively.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for a volume of Rs. 40.58 billion at a weighted average rate of 8.57%.

Forex Market

In the Forex market, the USD/LKR on spot contracts depreciated further yesterday to close the day at Rs.304.50/304.80 against its previous day’s closing level of Rs.303.75/302.85.

The total USD/LKR traded volume for 18 September was $ 51.60 million.

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

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