Secondary bond market yields remain broadly steady; Rupee gains

Tuesday, 18 February 2025 00:35 - - {{hitsCtrl.values.hits}}

By WealthTrust Securities

The secondary bond market began the new trading week with yields holding broadly steady on the back of moderate activity and transaction volumes. Market participants were seen adopting a wait-and-see approach amidst the presentation of the 2025 Budget.

The 15.05.26 maturity traded within the range of 8.60%-8.55% and the 15.12.26 maturity at the rate of 8.92%. The 15.02.28 and 01.05.28 bonds were seen trading within the rates of 10.08% and 10.19%-10.18% respectively. The 15.07.29 and 15.09.29 maturities were seen trading at the rate of 10.80%. The 15.10.30 maturity was seen trading down the range of 11.25% to 11.20%. The 01.10.32 maturity was seen trading at the rate of 11.45%.

In secondary market bills August and November 2025 maturities were observed trading at the rates of 7.94% and 8.23% respectively.

The total secondary market Treasury bond/bill transacted volume for 14 February was Rs. 36.12 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.98% and 8.01% respectively.

The net liquidity surplus stood at Rs. 159.72 billion yesterday. Rs. 2.94 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 162.66 billion was deposited at the Central Bank’s SDFR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 appreciating to Rs. 295.25/295.50 against its previous day’s closing level of Rs. 295.40/295.70.

The total USD/LKR traded volume for 14 February was $ 50.89 million.

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

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