Secondary bond market activity moderates; Policy rates unchanged

Friday, 5 March 2021 01:05 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The Central Bank of Sri Lanka was seen holding its policy rates on its Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) steady at 4.50% and 5.50% at its monetary policy announcement yesterday.

The activity in the secondary bond market moderated yesterday with yields increasing marginally, following the monetary policy announcement. Yields on the liquid maturities of 01.10.22, 01.09.23, 15.11.23 and 15.09.24 were seen hitting highs of 5.73%, 6.25%, 6.26% and 6.66% respectively, against its previous day’s closing levels of 5.65/73, 6.10/20, 6.18/22 and 6.60/65. In the secondary bill market, April 2021 and January 2020 maturities traded at levels of 4.65%-4.72% and 5.10%-5.13% respectively. The total secondary market Treasury bond/bill transacted volume for 3 March was Rs. 47.89 billion.

In the money market, weighted average rates on call money and repo was registered at 4.54% and 4.55% respectively, as the overnight surplus liquidity stood at Rs. 174.72 billion yesterday.

USD/LKR

In the Forex market, USD/LKR rate on the more active one-week forward contracts were seen closing the day at Rs. 196.00/197.00 against its previous day’s closing level of Rs. 196.50/197.00.

The total USD/LKR traded volume for 3 March was $ 43.75 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.