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Tuesday, 19 November 2024 00:48 - - {{hitsCtrl.values.hits}}
By WealthTrust Securities
The Secondary Bond market yesterday started off the new trading week on a positive note, carrying over the bullish momentum from the week prior.
A buying frenzy saw yields plummet to hit fresh lows on the back of strong demand, following the decisive results of the recent Parliamentary Election. Trading activity and transaction volumes were seen at staggering levels in the morning, but moderated towards the tail-end of the day amidst some minor profit taking. Despite this, two-way quotes were seen closing the day significantly lower.
The shorter tenor 01.02.26 and 15.12.26 maturities were observed trading lower at the rate of 9.90% and 10.35%, respectively. The yield on the 15.09.27 and 15.12.27 maturities declined from intraday highs to lows 10.80%-10.65% and 10.85%-10.70%, respectively. The 15.02.28 and 15.03.28 maturities traded down the range of 11.25%-10.95%. The other 2028 tenors followed suit.
In particular, the 01.05.28 maturity hit an intraday low of 10.95%, down from an intraday high of 11.35%. For context, this maturity was issued at auction just last Tuesday (12 November) at the weighted average rate of 11.63%. The 15.10.28 and 15.12.28 maturities were seen trading at the rates of 11.15% and 11.20%-11.10%, respectively. The yield on the 15.09.29 maturity reduced from 11.45% to 11.25% intraday. The medium tenor 01.10.32 maturity also saw its yield decline from 11.85%-11.60%.
The total secondary market Treasury bond/bill transacted volume for 14 November was Rs. 18.47 billion.
In money markets, the weighted average rates on overnight call money and repo stood at 8.57% and 8.70%, respectively. The DOD (Domestic Operations Department) of the Central Bank injected liquidity by way of an overnight repo auction for Rs. 50 billion at the weighted average rate of 8.58%.
The net liquidity surplus stood at Rs. 102.11 billion yesterday. An amount of Rs. 8.84 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%, while an amount of Rs. 160.95 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 8.25%.
Forex market
In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 291.35/291.45 against its previous day’s closing level of Rs. 292.25/292.30.
The total USD/LKR traded volume for 14 November was $ 95.35 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
