Tuesday Nov 19, 2024
Tuesday Nov 19, 2024
Friday, 8 November 2024 00:10 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Yields in the secondary bond market continued to edge lower yesterday, driven by buying interest on popular liquid maturities. In particular, longer duration 2028 tenors saw strong demand push yields down. Meanwhile, market activity and transaction volumes were seen at healthy levels.
The 01.05.27 and 15.09.27 were seen trading lower at the rates of 11.20% and 11.30%. The 2028 tenors followed suit. The 15.03.28, 01.05.28, 01.07.28 and 15.12.28 maturities changed hands at the rates of 11.67%-11.65%, 11.70%, 11.75% and 11.85%-11.80%.
The upcoming Treasury bond auction due next Tuesday, 12 November will have on offer Rs. 85.00 billion from 1 May 2028 maturity bearing a coupon of 09.00% and Rs. 47.50 billion from a 1 October 2032 maturity bearing a coupon rate of 09.00%.
The total secondary market Treasury bond/bill transacted volume for 6 November was
Rs. 113.30 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.56% and 8.72% respectively. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight and reverse repo auction for Rs. 10.95 billion at the weighted average rate of 8.49%.
The net liquidity surplus stood at Rs. 169.51 billion yesterday. No funds were withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%, while an amount of Rs. 180.46 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 8.25%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed up at
Rs. 292.55/292.65 as compared to Rs. 292.80/292.90.
The total USD/LKR traded volume for 6 November was
$ 65.73 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
