Secondary bond market yields edge down on active trade; Rupee dips slightly

By Wealth Trust Securities

The secondary bond market commenced the week on a positive note with yields dipping down on considerable volumes. 

Trading continued to be principally on the 2026 maturities (i.e., 01.06.26 and 01.08.26), which saw yields drop from levels of 15.16% to 15.10%. Additionally, trades were seen in the 2025’s (i.e., 15.01.25, 01.06.25, 01.07.25), 01.05.27 and 01.07.28 which were at levels of 15.00%, 15.00% and 14.55% respectively.

In secondary market bills November/December 2024 maturities were seen traded within the range of 15.75% to 16.40%. Whereas, February and April 2024 maturities changed hands at 16.00% to 16.10% and 15.10% respectively.

The total secondary market Treasury bond/bill transacted volume for 13 October was Rs. 21.24 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 10.21% and 10.79% respectively while the net liquidity deficit stood at Rs. 88.50 billion yesterday.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight auction for Rs. 48.55 billion at a weighted average rate of 10.29%. An amount of Rs. 51.47 billion was withdrawn from Central Bank’s SLFR (Standard Lending Facility Rate) of 11.00% while an amount of Rs. 11.52 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 10.00%. 

Forex market 

In the forex market, the USD/LKR rate on spot contracts closed the day at Rs. 323.90/324.10 against its previous day’s closing level of Rs. 323.80/323.90.

The total USD/LKR traded volume for 13 October was $ 17.75 million. 

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