Bond market opens week on downward slope

By Wealth Trust Securities

The week’s opening trading session in the secondary bond market saw yields decreasing further, with the market favourite maturities of 15.12.22 15.01.23, 2024s (i.e. 01.01.24, 15.03.24 & 15.09.24), 01.05.25 and 01.02.26 hitting lows of 7.54%, 7.61%, 7.90%, 8.03%, 8.15%, 8.34% and 8.47% respectively against its previous day’s closing levels of 7.55/58, 7.61/65, 7.95/05, 8.00/10, 8.15/20, 8.35/38 and 8.48/52. However, the downward trend slowed towards the later part of the day as activity moderated. In addition, maturities of 2022s (i.e. 01.07.22 & 01.10.22), 15.12.23, 15.03.25 and 15.10.27 changed hands at levels of 7.45%, 7.50%, 7.80% to 7.86%, 8.35% to 8.40% and 8.70% to 8.75% respectively as well.

In the secondary bill market, June 2020 to October 2020 and May 2021 maturities changed hands at 6.50% to 6.77% and 6.90% respectively.

The total secondary market Treasury bond/bill transacted volume for 12 June was Rs. 14.56 billion. 

 Meanwhile in money markets, the overnight net liquidity surplus in the system stood at Rs. 89.72 billion yesterday with overnight call money and repo rates averaging at 5.78% and 5.93% respectively. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs. 5.0 billion for Standalone Primary Dealers by way of a 07 day reverse repo auction at a weighted average rate of 6.50%.

Rupee loses 

 In Forex markets, the USD/LKR on spot contracts was seen losing ground yesterday to close the day at Rs. 185.85/00 against its previous day’s closing levels of Rs. 185.30/45 on the back of buying interest by banks.

The total USD/LKR traded volume for 12 June was $ 115.12 million.  

 (References: Central Bank of 

Sri Lanka, Bloomberg 

E-Bond trading platform, Money 

broking companies)