Sunday Sep 29, 2024
Sunday Sep 29, 2024
Tuesday, 9 July 2024 00:12 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market kicked off the trading week on a dull note, with market participants taking a cautious approach ahead of this week’s Treasury bond auction. The market was at a complete standstill for much of the day, with only sparse trades observed on thin overall transaction volumes. However, yields were seen holding broadly steady.
Accordingly, limited trades were observed on selected maturities with 15.02.28 and 15.09.29 maturities transacting at 11.85% and 12.00% to 12.03% respectively.
In secondary market bills, September maturities were seen changing hands down from intra-day highs of 9.91% to lows of 9.85% on the back of healthy volumes.
The details of the upcoming round of Treasury bond auctions due to be held this Thursday, 11 July, were announced. The auction will comprise of Rs. 58.00 billion from a bond due on 15 December 2027 bearing a coupon of 11.25% and Rs. 80.00 billion from a bond due on 1 December 2031 bearing a coupon of 12.00%.
The total secondary market Treasury bond/bill transacted volume for 5 July was Rs. 9.86 billion.
In money markets, the weighted average rate on overnight call money was at 8.74% and repo was at 9.05%.
The net liquidity surplus stood at Rs. 125.39 billion yesterday as an amount of Rs. 2.94 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50% against an amount of Rs. 137.56 billion been deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.50%.
Further, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 9.23 billion at the weighted average rate of 8.59%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day stable, at Rs. 304.35/304.50 against its previous day’s closing level of Rs. 304.45/304.75.
The total USD/LKR traded volume for 5 July was $ 41.30 million.
