Upward momentum in the bond market continues

By Wealth Trust Securities

The start of a new trading week saw the upward momentum in the secondary bond market yields continue, mainly on the liquid maturity of 15.10.27, as its yield increased to 11.50% against its previous day’s closing levels of 11.32/38 while overall market recorded thin trading volumes. In secondary bills, 28 January maturity was seen changing hands at levels of 7.18% and 7.25%.

The total secondary market Treasury bond/bill transacted volume for 17 December was Rs. 2.47 billion.   

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 34.35 billion and Rs. 3.25 billion by way of overnight and three-day repo auctions at weighted average rates of 5.99% and 5.98% respectively, while an amount of Rs. 69.65 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 5%. The net liquidity deficit was registered at Rs. 331.42 billion yesterday as an amount of Rs. 438.66 billion was withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 6%. The weighted average rates on overnight call money and repo remained mostly unchanged at 5.91% and 6% respectively.

USD/LKR   

In the Forex market, the overall market remained inactive.

The total USD/LKR traded volume for 17 December was $ 34.95 million.   

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