Record-breaking bond auctions in the offering

• Bond market activity moderates
• Rupee appreciates slightly

By Wealth Trust Securities 

The Central Bank of Sri Lanka announced the largest ever bond auction in Sri Lanka’s history, due on 25 September (next Monday) with a total offered volume of Rs. 220 billion, in lieu of the upcoming 01.10.2023 bond maturity. This trumps the previous highest offered amount of Rs. 200 billion at a round of auctions conducted on 28 August. 

The secondary bond market activity remained subdued yesterday with the 01.05.28 maturity changing hands at 14.25%.

In secondary bills, October/December 2023 and March/April 24 maturities traded at levels of 17.50% and 15.35% to 16.00% respectively.

The total secondary market Treasury bond/bill transacted volume for 20 September was Rs. 47.21 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight and six-day reverse repo auction for volumes of Rs. 14.60 billion and Rs. 01.00 billion at weighted average rates of 11.30% and 11.75% respectively. Furthermore, an amount of Rs. 30.47 billion was withdrawn from Central Bank’s SLFR (Standard Lending Facility Rate) of 12.00%. The net market liquidity deficit stood at Rs. 44.22 billion yesterday.

The weighted average rates on overnight call money and repo were registered at 11.51% and 11.92% respectively.

Forex market 

In the forex market, the Rupee or USD/LKR rate on spot contracts appreciated marginally, closing trading yesterday at Rs. 324.20/324.75 against its previous day’s closing level of Rs. 324.75/325.00.

The total USD/LKR traded volume for 20 September was $ 152.10 million.