Bond market commences week on a lackluster note ahead of T-bills auction

By Wealth Trust Securities

The secondary bond market commenced the fresh trading week on a dull note yesterday with limited trades witnessed. 

The 15.09.24 and 01.02.26 maturities changed hands at levels of 6.10% and 6.60% respectively while continued demand for secondary bills saw 10 September and 22 October 2021 maturities change hands at 4.85% and 4.93% respectively as well.

Today’s bill auction, conducted one day ahead due to a shortened trading week, will have on offer a total amount of Rs. 40 billion, consisting of Rs. 7.5 billion on the 91 day, Rs. 15 billion on the 182 day and Rs. 17.5 billion on the 364 day maturities. 

At last week’s auction, weighted average yields of the 182 and 364 day maturities decreased sharply to 3.87% and 4.13% respectively while all bids received on the 91 day maturity were rejected. Stipulated cut off rates were published as 4.59%, 4.71% and 4.97% respectively.

In the money market, overnight surplus liquidity remained high at Rs. 191.59 billion yesterday while call money and repo remained steady to average 4.52% and 4.58% respectively. 

Rupee broadly steady

The USD/LKR rate was seen holding broadly steady yesterday to close the day at Rs. 184.30/40 against its Friday’s closing of Rs. 184.20/35 on the back of an equilibrium market.

The total USD/LKR traded volume for 23 October was $ 59.75 million.   

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