Bond market remains dull ahead of the weekly bill auction

Tuesday, 2 February 2021 00:32 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary bond market remained rather dull yesterday, with limited amount of trades seen on the 2022’s (i.e. 15.11.22 and 15.12.22) and 15.12.23 maturities at levels of 5.41% to 5.42% and 5.84% to 5.85% respectively. In the secondary bill market, February and June 2021 maturities changed hands at levels of 4.58% and 4.75% respectively.

Today’s bill auction will have on offer Rs. 40 billion, consisting of Rs. 8 billion on the 91-day, Rs. 4 billion on the 182-day and a further Rs. 28 billion on the 364-day maturities. The stipulated cut-off rate for the 182-day and 364-day maturities were increased by three basis points each to 4.80% and 5.02% respectively, with the 91-day cut-off rate being increased by one basis point to 4.71%.

The total secondary market Treasury bond/bill transacted volumes for 29 January was Rs. 2.45 billion.

In the money market, overnight call money and repos averaged 4.54% and 4.55% respectively, with the surplus liquidity standing at Rs. 120.53 billion.

Rupee depreciates

In the Forex market, the USD/LKR rate on spot contracts depreciated to close the day at Rs. 193.00/194.00 in comparison to with the previous day’s closing levels of Rs. 191.00/192.00.

The total USD/LKR traded volume for 29 January was $ 61.10 million.

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