Weekly weighted averages increase for third consecutive week

• Upward momentum in bond yields continue

By Wealth Trust Securities

The weekly weighted average rates were seen increasing for a third consecutive week at its auction held yesterday as only an amount of Rs. 16.70 billion was accepted in total against its total offered amount of Rs. 38 billion. 

The shorter maturity of 91 day reflected the highest increase of 10 basis points to 4.82%, closely followed by the 182 day and 364 day maturities by 08 and 05 basis points respectively to 4.93% and 5.09%. The bids to offer ratio dipped to 1.45:1. 

In the secondary bond market, yields were seen increasing further yesterday with the liquid maturities of 15.12.22, 15.01.23, 2024’s (i.e. 15.09.24 and 01.12.24) and 01.02.26 hitting highs of 5.82%, 5.90%, 6.80%, 6.85% and 7.16% respectively against its previous day’s closing levels of 5.75/80, 5.75/85, 6.70/80 each and 6.95/25. 

In addition, maturities of 01.05.21, 15.07.23, 15.12.23 and 01.08.24 traded at levels of 4.73%, 6.05% each and 6.75% respectively as well. In secondary bills, 13 August 2020 maturity traded at 4.88%.

The total secondary market Treasury bond/bill transacted volumes for 16 February was Rs. 3.87 billion.   

In the money market, weighted average rates on call money and repo remained mostly unchanged at 4.54% and 4.55% respectively while the overnight surplus liquidity was registered at Rs. 145.98 billion yesterday.

Rupee remains mostly unchanged

In Forex markets, the USD/LKR rate on the more active one week forward contracts were seen closing the day at levels of Rs. 196.50/197.50 yesterday  against its previous day’s closing level of Rs. 196.00/198.00.

The total USD/LKR traded volume for 16 February was $ 41.77 million.   

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