Three-year bond yield crosses 11% mark for first time in over 2 years

By Wealth Trust Securities

The fresh trading week commenced with continued aggressive selling interest on the three year or 2025 maturities as its yield cross the 11.00% psychological level for the first time since March 2019 on the back of limited activity yesterday. 

The 15.03.25, 01.05.25 and 01.08.25 maturities saw its yields hit highs of 11.20% each and 11.45% respectively against its previous day’s closing levels of 10.75/80. In addition, 15.05.30 maturity changed hands at 12.00%.

In secondary bills, 28 January 2022 maturity traded at level of 7.55%.

The total secondary market Treasury bond/bill transacted volumes for 24 December was Rs. 1.06 billion.   

In money markets, the net liquidity deficit was registered at Rs. 353.61 billion yesterday as an amount of Rs. 87.24 billion was deposited at Central Banks Standard Deposit Facility Rate (SDFR) of 5.00% against an amount of Rs. 440.85 billion withdrawn from Central Banks Standard Lending Facility Rate (SLFR) of 6.00%. 

The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka refrained from conducting any auction yesterday while the weighted average rates on overnight Call money and REPO remained steady at 5.94% and 6.00% respectively.

USD/LKR   

In the Forex market, the USD/LKR rate on spot contracts traded at Rs. 203.00 while the overall market remained inactive yesterday.

The total USD/LKR traded volume for 24 December was $ 11.70 million.   

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