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Monday, 21 March 2022 00:34 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The renewed buying interest in the secondary bond market towards the latter part of the week ending 18 March 2022 saw yields decreasing mainly on the liquid maturities of 01.08.24 and 15.06.27 to hit weekly lows of 14.30% and 15.05% respectively against its previous weeks closing level of 14.75/00 and 15.00/25.
In addition, two-way quotes across the rest of the yield curve were seen reducing as well. This intern led to a parallel shift downwards of the overall yield curve for the first time in six weeks.
This is despite the outcome of the weekly Treasury bill auction, at where weighted average rates soared once again. The SLDB (Sri Lanka Development Bonds) auction of $ 50 million was fully subscribed for the first time in eight months, solely on the six-month maturity while the total accepted amount shot up to $ 175.08 million due to the direct issuance window. This was the highest amount accepted from a SLDB auction in over 11 months as well.
The foreign holding in rupee bonds increased marginally to Rs. 2.65 billion for the week ending 16 March while the daily secondary market Treasury bond/bill transacted volumes for the first three trading days of the week averaged Rs. 17.32 billion.
In money markets, the total outstanding liquidity deficit decreased to Rs. 613.23 billion by the end of the week against its previous weeks of Rs. 703.57 billion while CBSL’s holding of Govt. Securities stood at Rs. 1,699.98 billion against its previous weeks of Rs. 1521.70 billion.
The weighted average rates on call money and repo remained mostly unchanged at 7.50% each for the week.
Forex market
The USD/LKR rate on spot contracts depreciated during the week to trade at Rs. 280.00 against its previous weeks closing levels of Rs. 260/75.
The daily USD/LKR average traded volume for the four trading days of the week stood at $ 66.05 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
