Secondary bond market activity moderates

By Wealth Trust Securities

The activity in the secondary bond market moderated yesterday with a limited amount of trades witnessed on the 15.10.27 maturity as its yield was seen edging up to a high of 11.30% against its previous day’s closing level of 11.20/27. In secondary bills, December 2021 and January 2022 maturities traded at levels of 6.75% to 7.15%.

The total secondary market Treasury bond/bill transacted volume for 15 December was Rs. 51.79 billion.   

In money markets, the net liquidity deficit increased to Rs. 321.45 billion yesterday as an amount of Rs. 68.48 billion was deposited at Central Banks Standard Deposit Facility Rate (SDFR) of 5.00% against an amount of Rs. 429.08 billion withdrawn from Central Banks Standard Deposit Facility Rate (SLFR) of 6.00%.  The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 39.15 billion by way of overnight repo auction at a weighted average rate of 5.99%. The weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.91% and 5.98% respectively.

USD/LKR   

In the Forex market, the USD/LKR rate on spot contracts continued to trade within a narrow range of Rs. 202.97 to Rs. 203.00 while the overall market remained inactive.

The total USD/LKR traded volume for 15 December was $ 61.77 million.   

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