Bond market activity remains moderate

By Wealth Trust Securities

The activity in the secondary bond market remained rather moderate yesterday as limited trades were witnessed within a very tight range across the yield curve. Maturities of 2022’s (i.e. 15.11.22 & 15.12.22) and 2023’s (i.e. 15.01.23 & 15.07.23), 01.08.24, 01.05.25, 2026’s (i.e. 01.02.26, 01.06.26 & 01.08.26) and 15.08.27 changed hands at levels of 5.54%, 5.55%, 5.58%, 5.80%, 6.22% to 6.245%, 6.39% to 6.41%, 6.54% to 6.56%, 6.59% to 6.60%, 6.64% to 6.65% and 6.97% to 6.99% respectively. 

In the meantime, December 2020 and August 2021 maturities traded at levels of 4.50% and 4.88% respectively in the secondary bill market.

The total secondary market Treasury bond/bill transacted volumes for 26 August was Rs. 9.34 billion.  

In the money market, overnight surplus liquidity increased to Rs. 201.05 billion yesterday with weighted average rates on overnight call money and Repo’s recorded at 4.53%.

 LKR appreciates

 In the Forex market, USD/LKR rate on spot contracts was seen appreciating yesterday to close the day at Rs. 185.95/10 against its previous day’s closing level of Rs. 186.30/50 on the back of selling interest by banks.   

The total USD/LKR traded volume for 26 August was $ 81.02 million.   

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