Secondary bond market starts off slow; yields stable

Tuesday, 9 July 2024 00:12 - - {{hitsCtrl.values.hits}}

Rs. 138 b T-bond auction details announced
Rupee broadly steady

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The net liquidity surplus stood at Rs. 125.39 billion yesterday as an amount of Rs. 2.94 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50% against an amount of Rs. 137.56 billion been deposited at Central Banks SDFR (Standard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.

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.