Yields remain mostly unchanged ahead of weekly bill auction

By Wealth Trust Securities

The secondary bond market yields remained mostly unchanged yesterday on moderate activity, except the liquid maturity of 15.09.24 which saw its yield decreasing to an intraday low of 6.55% in comparison to its previous day’s closing level of 6.55/60. 

In addition, limited trades were seen on the maturities of 2022’s (i.e. 15.11.22 and 15.12.22), 15.01.23, 01.09.23, 01.01.24 and 01.12.24 at levels of 5.80% to 5.88%, 5.93%, 6.21%, 6.42% and 6.65% respectively while in the secondary bill market, May and June 2021 maturities and 17 September 2021 maturity were traded at levels of 4.80% to 4.90% and 5.08% respectively. 

The weekly bill auction due today will see a total amount of Rs. 45 billion on offer, consisting of Rs. 10 billion of the 91-day maturity, Rs. 15 billion of the 182-day maturity and a further Rs. 20 billion of the 364-day maturity. At last week’s auction, weighted average yields increased across the board by 02 and 01 basis point each on the 91-day, 182-day and 364-day maturities respectively to 5.01%, 5.07% and 5.11%. The stipulated cut off rate on the 364-day maturity remained unchanged at 5.12%, while the yield rates of the 91-day and 182-day maturities will be decided below the level of the 364-day maturity at the auction.

The total secondary market Treasury bond/bill transacted volume for 22 March 2021 was Rs. 2.30 billion.  

In money markets, net liquidity surplus was seen decreasing further yesterday to Rs. 100.67 billion with an amount of Rs. 132.67 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 32.00 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo stood at 4.57% and 4.58% respectively.

USD/LKR 

In the Forex market, USD/LKR rate on the more active one-week forward contracts were seen closing the day at Rs. 198.50/199.00 in comparison to its previous day’s closing level of Rs. 199.00/199.50.

The total USD/LKR traded volume for 22 March 2021 was $ 102.00 million.  

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