Rs. 100 billion bond auctions in focus

Tuesday, 12 October 2021 03:51 - - {{hitsCtrl.values.hits}}

Secondary market at a standstill

By Wealth Trust Securities

The T-Bond auctions scheduled for today will see in total an amount of Rs. 100 billion on offer in lieu of an Rs. 85.46 billion maturity due on the 15 October. The auction will consist of Rs. 30 billion each of 15.12.2023 and 15.01.2027 maturities and a further Rs.40 billion of a 01.10.2032 maturity. The weighted average yields at the bond auctions conducted on 28 September for the maturities of 15.11.2023 and 15.05.2030 were recorded at 8.12% and 10.23% respectively. The second phase of the auction was opened for the undersubscribed 15.11.2023 maturity, while a direct issuance window was opened for the fully subscribed 15.05.2030 maturity.

The secondary bond market was at a standstill yesterday as market participants continued to be on the side lines.

The total secondary market Treasury bond/bill transacted volume for 8 October was Rs. 0.51 billion.

In money markets, the net liquidity deficit increased to Rs. 43.95 billion yesterday, as an amount of Rs. 85.58 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 5%, against an amount of Rs. 129.73 billion withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 6%. The weighted average rates on overnight call money and Repo registered at 5.91% and 5.93% respectively, while the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs. 0.2 billion by way of a seven-day Repo auction at a weighted average rate of 5.99%.

USD/LKR

The Forex market remained inactive yesterday.

The total USD/LKR traded volume for 8 October was $ 60 million.

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

Negative start for Colombo bourse in fresh week

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