Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 29 October 2021 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The Treasury bond auctions conducted yesterday produced impressive outcomes registering weighted averages below its secondary market yields as the 15.03.2025 maturity recorded a weighted average rate of 9.94% against
its previous day’s closing rate of 9.75/10.50 for a similar maturity. Furthermore, the 01.09.2028 maturity recorded a weighted average rate of 11.61% against its previous day’s closing rate of 10.50/12.00 for a similar maturity.
The phase 2 of the auction was opened for the 2025 maturity while an issuance window of 20% of the offered amount on the 2028 maturity was opened until close of business of the day prior to settlement (i.e. 4 p.m. on 29.10.2021).
The secondary bond market yields declined further yesterday, mainly following the auction outcomes as the liquid maturities of 15.12.23 and 15.01.27 hit intraday lows of 9.20% and 11.10% respectively against its previous day’s closing levels of 9.25/35 and 11.20/30. In addition, 01.09.28 maturity changed hands at a level of 11.58% to 11.62%. In secondary bills, the 91 day bill maturity traded at levels of 7.90% to 8.00%.
The total secondary market Treasury bond/bill transacted volume for 27 October was Rs. 39.01 billion.
In money markets, the weighted average rates on overnight call money and REPO remained mostly unchanged at 5.90% and 5.96% while the net liquidity deficit decreased to Rs. 136.97 billion yesterday. An amount of Rs. 84.38 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 5.00% against an amount of Rs. 265.43 billion withdrawn from Central Bank’s Standard Deposit Facility Rate (SLFR) of 6.00%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 18.68 billion and Rs. 25.4 billion by way of overnight and 6 day repo auctions at weighted average rates of 5.99% and 5.98% respectively.
USD/LKR
In the Forex market, the USD/LKR rate on spot contracts traded at level of Rs. 202.97 to Rs. 203.00 yesterday.
The total USD/LKR traded volume for 27 October was $ 40.80 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
