Secondary Bond market holds steady; Rupee continues to slide

Friday, 3 November 2023 00:30 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market activity moderated somewhat yesterday with yields remaining broadly steady. Trades continued to be seen across the yield curve. The liquid maturities of 01.06.26, two 27’s (i.e.; 01.05.27 and 15.09.27), three 28’s (i.e., 15.01.28, 01.05.28 and 01.07.28), 15.07.29 and 15.05.30 were seen changing hands at levels of 14.92%, 15.08% to 15.00%, 15.13% to 14.85%, 14.40% and 14.40% to 14.30% respectively.

In secondary market bills, November/December 2024 maturities were seen traded within the range of 15.00% to 14.10%, whereas, January, February/March and May 2024 maturities changed hands at 15.30% to 15.17%, 15.50% and 14.90% levels respectively.

The total secondary market Treasury bond/bill transacted volume for 1 November 2023 was Rs.91.25 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 10.24% and 11.00% respectively while the net liquidity deficit stood at Rs.48.00 billion yesterday.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight auction for LKR 35.28 billion at a weighted average rate of 10.08%. An amount of Rs.23.69 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 11.00% while an amount of Rs. 10.96 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 10.00%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day at Rs.328.75/329.50 yesterday against its previous day’s closing level of Rs.328.00/328.30.

The total USD/LKR traded volume for 1 November was $ 21.35 million.

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