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Monday, 17 October 2022 04:52 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary bond market activity was at a standstill during the first half of the shortened trading week ending 14 October and picked up marginally towards the latter part of the week following the Treasury bond auction outcomes on Thursday.
The limited activity was witnessed on the maturities of 01.07.25 and 15.07.29 within a narrow range of 31.93% to 31.95% and 30.90% to 30.91% respectively.
The outcome at the primary auctions further supported the dull activity levels, where the bill auctions conducted on Wednesday saw weighted average rates on the 91-day and 182-day maturities increasing further by 71 and 192 basis points respectively in comparison to its previous weighted average rates. Furthermore, the weighted average rate on the three-year bond maturity increased by 98 basis points at its auction conducted on Thursday as well.
The foreign holding in rupee bonds remained mostly unchanged at Rs. 22.59 billion for the week ending 5 October while the daily secondary market Treasury bond/bill transacted volumes for the first three trading days of the week averaged Rs. 17.78 billion.
In money markets, the weighted average rates on overnight call money and repo were at 15.50% each for the week while the total outstanding liquidity deficit was registered at Rs. 515.51 billion by the end of the week against its previous weeks of Rs. 517.43 billion. The CBSL’s holding of Government Securities stood at Rs. 2,383.84 billion against its previous weeks of Rs. 2,356.52 billion.
USD/LKR
In the forex market, the middle rate for USD/LKR spot contracts depreciated during the week to close at Rs. 363.14 against its previous week’s closing of Rs. 362.90. The daily USD/LKR average traded volume for the first three trading days of the week stood at $ 44.87 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
