Secondary bond market yields consolidate

Friday, 7 February 2025 00:00 - - {{hitsCtrl.values.hits}}

Rupee steady

By WealthTrust Securities

The secondary bond market yesterday saw yields move in range bound trading, closing broadly steady while activity and transaction volumes were seen at healthy levels.

The shorter tenor 01.06.25 and 01.07.25 maturities were seen trading within the range of 8.05%-8.00%. The 2026 tenor 01.08.26 maturity was seen trading at the rate of 8.80% and the 01.05.27 maturity within the range of 10.60%-10.57%.

On the most liquid 2028 maturities, the early 2028 tenor 15.02.28 maturity was seen trading at the rate of 10.15%. The mid-2028 tenor 01.05.28 maturity was seen changing hands at the rate of 10.28%. The late-2028 tenor 15.10.28 maturity was seen trading at the rate of 10.41%-10.40%.

The 15.06.29 maturity was seen trading at the rates of 10.88%-10.85% and the 15.05.30 maturity at 11.12%.

Conversely in the secondary bill market yields were seen edging down further. February/March 2025 tenors were seen trading at the rates of 8.00%. May 2025 Bills (close to 3 months) were seen trading at the rate of 7.79% and August Bills (close to 6 months) were seen trading at the rate of 7.90%. 1-year Bills (February 2025) were seen trading down the range of 8.47%-8.43%.

The total secondary market Treasury bond/bill transacted volume for 5 February 2025 was Rs. 87.33 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 8.00% and 8.02% respectively.

The net liquidity surplus stood at Rs. 159.89 billion yesterday. Rs 2.63 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 162.52 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day broadly steady at Rs. 298.40/298.70 as against its previous day’s closing level of Rs. 298.50/298.75.

The total USD/LKR traded volume for 5 February, 2025 was $ 71.70 million.

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

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