Bond market activity moderates ahead of weekly bill auction

By Wealth Trust Securities

Activity in the secondary bond market moderated considerably yesterday as yields increased further with most market participants seen on the sidelines.

Limited trades were witnessed of the liquid maturities of 01.10.22 and 15.12.23 at levels of 8.90% and 9.25% to 9.45% respectively against its previous day’s closing levels of 8.75/90 and 9.10/25.

However, the secondary bill market continued to be active as the maturities of October 2020, November 2020 and January 2021 changed hands at levels of 7.55%, 7.53% to 7.63% and 7.72% to 7.76% respectively. 

At today’s bill auction, a total amount of Rs. 30 billion will be on offer, consisting of Rs. 6 billion  of the 91 day bill, Rs. 10 billion of the 182 day bill and a further Rs. 14 billion of the 364 day bill.

At last week’s auction, the weighted average yields plunged across the board by 27, 57 and 82 basis points respectively to 7.00%, 7.25% and 7.50%.

The total secondary market Treasury bond/bill transacted volumes for 30 March was Rs. 5.6 billion. 

Meanwhile in money markets, the weighted average yield on the overnight call money and repo rates stood at 6.75% and 6.86% respectively as the overnight net liquidity surplus in the system increased to Rs.58.58 billion yesterday.

USD/LKR

In the Forex market, the USD/LKR rate on spot contracts was traded at level of Rs.190.75 yesterday against its previous days of Rs.188.50 to Rs.190.00.

 The total USD/LKR traded volume for 30 March was $ 129.06 million.

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