Secondary bond market activity moderates ahead of the weekly bill auction

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday with most market participants opting to be on the sidelines. Limited trades consisting of the 2022’s (i.e. 01.10.22 & 15.12.22) and 01.12.24 maturities were witnessed at levels of 5.40% to 5.45% and 6.33% respectively, while in the secondary bill market, the 19 February and 30 April maturities changed hands at levels of 4.57% to 4.58% and 4.70% respectively.

Today’s bill auction will have on offer a total of Rs. 40 billion, consisting of Rs. 11 billion of the 91-day, Rs. 4 billion of the 182-day and a further Rs. 25 billion of the 364-day maturities. At last week’s auction, the weighted average rates of the 181-day and 364-day maturities decreased by one and three basis points respectively to 4.77% and 4.99% while the weighted average rate of the 91-day maturity remained steady at 4.70%. The same weighted average rates were announced as the stipulated cut off rates for today’s auction.  

The total secondary market Treasury bond/bill transacted volumes for 22 January was Rs. 2.5 billion.   

In the money market, the overnight surplus liquidity decreased further to Rs. 117.5 billion, with the weighted average rate of overnight call money and repo’s remaining steady at 4.54% and 4.55% respectively.

Rupee on spot contracts trades at Rs. 196 to Rs.196.5

In the Forex market, the USD/LKR rate on spot contracts traded at a level of Rs. 196 to Rs.196.5 while the more active one-month forward contracts closed the day at Rs.197.5/199.5 when compared with the previous day’s closing level of Rs.196.5/198.5 on spot next contracts. 

The total USD/LKR traded volume for 22 January was $ 55.62 million.   

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