Secondary Bond market yields consolidate; 2030 tenors see strong demand

Friday, 21 February 2025 00:10 - - {{hitsCtrl.values.hits}}

Rupee appreciates

By Wealth Trust Securities

The Secondary Bond market yesterday saw yields consolidate after rallying for two consecutive days, with activity and transaction volumes remaining robust. However, the exception being aggressive buying observed pushing yields lower specifically on the 2030 tenors. As such market two-way quotes were seen closing the broadly steady apart from the 2030 tenors.

The 01.05.27 and the 15.09.27 maturities traded within the ranges of 9.22%-9.20% and 9.45%-9.43% respectively. The 15.02.28 maturity was seen trading within the range of 10.00%-9.99%. The 01.05.28 and 01.07.28 maturities were seen trading at the rates of 10.09% and 10.20%-10.18% respectively. The 15.10.28 maturity was seen trading within the range of 10.33%-10.30%. The 15.09.29 maturity traded at the rates of 10.76%-10.75%. The 15.10.30 saw strong demand push yields down from an intraday high of 11.16% to a low of 11.13%.

The total secondary market Treasury Bond/Bill transacted volume for 19 February 2025 was Rs. 41.63 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.98% and 7.99% respectively.

The net liquidity surplus stood at Rs. 161.84 billion on Tuesday. Rs. 8.65 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 153.19 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 296.25/296.45 as against its previous day’s closing level of Rs. 297.15/297.65.

The total USD/LKR traded volume for 19 February 2025 was $ 82.85 million.

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

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.