Secondary Bond market yields consolidate

Tuesday, 11 March 2025 02:01 - - {{hitsCtrl.values.hits}}

Rs. 165.50 b Treasury Bill auction in focus
Rupee steady

By Wealth Trust Securities

The Secondary Bond market yesterday commenced the week consolidating, with yields trading sideways in a narrow band. Activity and transaction volumes were seen at healthy levels.

Accordingly, the 15.12.26 maturity was seen trading at the rate of 8.78%. The 15.09.27 maturity was observed trading within the range of 9.45%-9.47%. The 15.03.28 and 01.07.28 maturities traded within the ranges of 10.08%-10.05% and 10.22%-10.20% respectively. The 15.09.29 maturity was seen trading at the rate of 10.73%. The 15.10.30 maturity saw trades within the range of 11.00%-11.02%.

This comes ahead of the Treasury Bill auction due today, which will have a total amount of Rs. 165.50 billion on offer, a decrease of Rs. 1.50 billion over the previous week. This will consist of Rs. 30.50 billion on the 91-day maturity, Rs 55.00 billion on the 182-day and Rs. 80 billion on the 364-day maturity.

For reference, at the weekly Treasury Bill auction held last Wednesday (5 March), weighted average yields across all three offered maturities declined for the 13th consecutive week. Marking a continued downward trend, with yields on at least one tenor decreasing over the past 17 weeks. Accordingly, the weighted average rates on the 91-day tenor dropped by 4 basis points to 7.53%, the 182-day tenor by 1 basis points to 7.86% and the 364-day tenor by 1 basis point to 8.34%. Total bids received exceeded the offered amount by 1.90 times, and the entire Rs 167.00 billion on offer was successfully raised in the 1st phase in competitive bidding.

The total secondary market Treasury Bond/Bill transacted volume for 7 March was Rs. 8.42 billion.

In the money market, weighted average rates on call money and repo was registered at 7.98% and 7.99% respectively yesterday as the overnight surplus liquidity stood at Rs. 190.87 billion.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day broadly steady at

Rs.295.45/295.53 asagainst Rs. 295.40/295.50 the previous day.

The total USD/LKR traded volume for 7 March was

$ 47.30 million.

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

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