Positive momentum in the bond market continues

By Wealth Trust Securities

The start of a new trading week saw the positive momentum in the secondary market continuing as yields on the maturities of 15.03.25, 15.01.26, 15.01.27 and 15.05.30 dipped to change hands at lows of 9.40%, 9.85%, 10.18% and 11.30% respectively against its previous day’s closing levels of 9.45/50, 9.88/9.93, 10.28/32 and 11.30/40. 

In secondary bills, 7 January and 3 June 2022 maturities were seen changing hands at levels of 6.90% and 7.85% respectively. The total secondary market Treasury bond/bill transacted volume for 3 December was Rs. 7.79 billion.   

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 38.75 billion and Rs. 10 billion by way of overnight and seven-day repo auctions respectively at weighted average rates of 5.99% and 5.98%, while an amount of Rs. 76.97 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5%. An amount of Rs. 378.28 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6%, while the net liquidity deficit decreased to Rs. 252.56 billion yesterday. The weighted average rates on overnight call money and repo remained mostly unchanged at 5.92% and 5.97% 

respectively. 

 USD/LKR   

The USD/LKR market on cash contracts was seen taking place at Rs. 202.97 while the overall market remained broadly inactive. The total USD/LKR traded volume for 3 December was $ 20 million.   

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