Wednesday Dec 25, 2024
Wednesday Dec 25, 2024
Thursday, 19 December 2024 02:51 - - {{hitsCtrl.values.hits}}
By WealthTrust Securities
The secondary Bond market yesterday saw yields decline further on the back of healthy market activity and transaction volumes.
The shorter tenor 15.12.26 maturity was seen trading at 9.45%. Trades were observed on the 01.05.27 and 15.09.27 maturities at the rates of 9.75%-9.70% and 9.93%-9.80%, respectively. The yield on the 15.02.28 and 15.03.28 maturities were seen declining from 10.10% to 10.06%, respectively. The 01.05.28 maturity was seen trading down the range from 10.22%-10.15%, while the 01.07.28 maturity traded down from 10.275%-10.25%. The 15.09.29 maturity was observed trading down the range of 10.69%-10.66%. Additionally, trades were seen on the medium 15.05.30, 01.12.31, and 01.07.32 maturities at the levels of 11.00%-10.98%, 11.40%-11.35%, and 11.50%-11.48%, respectively.
At the weekly Treasury bill auction conducted yesterday (18 December), weighted average rates declined across all three maturities for the second consecutive week. Rates have been on a downward trajectory, with a decline observed on at least one tenor over the last six weeks. Accordingly, the weighted average rates on the 91-day tenor dropped by three basis points to 8.66%, the 182-day tenor by seven basis points to 8.81%, and the 364-day tenor by one basis point to 9.02%. Total bids received exceeded the offered amount by 2.22 times, and the entire Rs. 185 billion on offer was successfully raised at the first phase in competitive bidding.
The second phase of subscription for the auction will be opened across all three tenors at the weighted average rates until close of business of the day prior to settlement (i.e., 4 p.m. today).
The total secondary market Treasury bond/bill transacted volume for 17 December was Rs. 20.62 billion.
In money markets, the weighted average rates on overnight call money and repo stood at 8.00% and 8.04%, respectively.
The DOD (Domestic Operations Department) of the Central Bank abstained from conducting any repo/reverse repo auctions yesterday.
The net liquidity surplus stood at Rs. 187.85 billion yesterday. Rs. 0.85 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 188.70 billion was deposited at the Central Bank’s SDFR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 depreciating further to Rs. 291.55/291.85 against its previous day’s closing level of Rs. 291.15/291.25.
The total USD/LKR traded volume for 17 December was $ 53.90 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
