Money Market liquidity decreases sharply

By Wealth Trust Securities

The overnight net liquidity deficit in the Money Market was seen decreasing sharply yesterday, as it was recorded at Rs. 9.86 billion against its previous days Rs. 136.51 billion. An amount of Rs. 101.14 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5% against an amount of Rs. 111 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6%. The weighted average rates on overnight call money and repo remained steady at 5.94% each.

Activity in the secondary bond market centered on the 2023 maturities as volumes on the 01.10.23 and 15.11.23 were seen changing hands at levels of 8.20% and 8.25% respectively. Furthermore, two-way quotes on the rest of the yield curve was seen increasing as well.

The total secondary market Treasury bond/bill transacted volume for 1 October was Rs. 8.14 billion.   

USD/LKR   

The Forex market remained inactive yesterday. The total USD/LKR traded volume for 1 October was $ 46 million.   

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