Bond market activity remains moderate ahead of weekly bill auction

Wednesday, 4 November 2020 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The activity in the secondary bond market remained moderate yesterday ahead of today’s Treasury bill auction.

In limited trades, yields of the 15.12.22, 15.12.23, 15.09.24 and 15.08.27 maturities increased marginally to changed hands at levels of 5.60%, 5.91% to 5.95%, 6.18% and 6.92% to 6.93% respectively. In addition, 01.08.24 maturity changed hands at levels of 6.23% to 6.29% as well.

At today’s Treasury bill auction, the total offered amount of Rs. 40 billion will consist of Rs. 6 billion on the 91-day, Rs. 16 billion on the 182-day and Rs. 18 billion on the 364-day maturities. The stipulated cut off rates was reduced to the level of last week’s weighted averages of 4.57%, 4.69% and 4.96% respectively. In the secondary bill market, April 2020 bill maturities changed hands at 4.69% to 4.70%.

In the money market, the weighted average rates on the overnight call money and repo remained mostly unchanged at 4.53% and 4.59% respectively as the DOD (Domestic Operations Department) of Central Bank was seen injecting an amount of Rs. 10 billion by way of a 14-day reverse repo auction at a weighted average rate of 4.54%, valued today. The overnight surplus liquidity remained mostly unchanged.

Rupee strengthens

The USD/LKR rate on spot contracts was seen appreciating marginally yesterday to close the day at Rs.184.35/45 against its previous day’s closing of Rs.184.45/60, subsequent to trading at levels of Rs.184.35 to Rs.184.60.

The total USD/LKR traded volume for 02nd November was $ 72.34 million.

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