Monday Jan 27, 2025
Monday Jan 27, 2025
Thursday, 23 January 2025 04:43 - - {{hitsCtrl.values.hits}}
By WealthTrust Securities
The secondary Bond market yesterday saw yields decline on the back of renewed buying interest. Activity and transaction volumes were seen at robust levels.
The yields on the 2026 tenors, which had consistently been on a downward trajectory, were seen dropping further. The 15.05.26, 01.08.26, and 15.12.26 maturities were seen trading at the rates of 8.80%, 8.85%-8.80%, and 9.22%-9.15%, respectively.
The 01.05.27 and 15.09.27 maturities were seen trading down the ranges of 9.73%-9.70% and 9.85%. The early 2028 tenor 15.02.28 and 15.03.28 maturities were seen trading down the range of 10.17%-10.15% collectively. The mid-2028 tenor 01.05.28 and 01.07.28 were seen changing hands within the ranges of 10.30%-10.27% and 10.38%-10.35%, respectively. The late-2028 tenor 15.10.28 maturity was seen transacting at the rates of 10.41%-10.35%. The 15.09.29 maturity traded between intraday highs and lows of 10.85% to 10.75%. The 15.10.30 maturity changed hands within the range of 11.37%-11.30%.
The weighted average rates declined across all three maturities for the seventh consecutive week at its weekly Treasury bill auction conducted yesterday (22 January). As such, rates were seen continuing on a downward trajectory, with a reduction in yields observed on at least one tenor over the last 11 weeks. Accordingly, the weighted average rates on the 91-day tenor dropped by 21 basis points to 8.12%, the 182-day tenor by 19 basis points to 8.25%, and the 364-day tenor by 17 basis points to 8.63%.
Total bids received exceeded the offered amount by 2.91 times, and the entire Rs. 155 billion on offer was successfully raised at the first phase of 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., 3 p.m. today).
The total secondary market Treasury bond/bill transacted volume for 21 January 2025 was Rs. 13.23 billion.
In money markets, the weighted average rates on overnight call money and repo stood at 8.00% and 8.06%, respectively.
The net liquidity surplus stood at Rs. 148.47 billion yesterday. Rs. 2.98 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 151.45 billion was deposited at the Central Bank’s SDFR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 to Rs. 298.80/299.00 as against its previous day’s closing level of Rs. 297.65/297.80.
The total USD/LKR traded volume for 21 January 2025 was $ 100.25 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
