Significant improvement in money market liquidity continues

By Wealth Trust Securities 

The significant improvement in the overnight net liquidity shortfall witnessed during the early part of this week continued yesterday as well as the net deficit stood at Rs. 377.57 billion against a peak of Rs. 688.29 billion recorded on the 26 April 2022.

An amount of Rs. 312.83 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 690.40 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. The weighted average rate on overnight Repo remained steady at 15.50% while no transactions were recorded on call money.

In the secondary bond market, limited amount of activity was seen on the liquid maturities of 01.06.25 and 15.07.29 as its yields decreased to hit intraday lows of 28.00% and 29.50% respectively against its previous day’s closing level of 27.50/29.50 and 30.00/50.

The total secondary market Treasury bond/bill transacted volume for 12 July 2022 was Rs. 38.99 billion. 

 

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts depreciated to Rs. 361.90 on Tuesday against its previous day’s closing level of Rs. 360.9048.

The total USD/LKR traded volume for 12 July 2022 was $ 41.18 million.  

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