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Saturday Dec 14, 2024
Wednesday, 17 February 2021 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary market bond yields edged up further yesterday as trades were witnessed across the yield curve.
The liquid maturities of 2022’s (01.10.22 and 15.12.22), 01.10.23, 2024’s (15.06.24 and 15.09.24), 01.09.28 and 15.05.30 were seen changing hands at levels of 5.67% to 5.75%, 6.01% to 6.05%, 6.70% to 6.73%, 7.85% to 8.05% and 7.95% to 8.30% respectively. In secondary bills, April 2020 maturities traded at levels of 4.70% to 4.72%.
Today’s weekly bill auction will see a total amount of Rs. 38 billion on offer, consisting of Rs. 5 billion of the 91-day maturity, Rs. 8 billion of the 182-day maturity and a further Rs. 25 billion of the 364-day maturity. At last week’s auction, weighted average yields increased across the board by two, seven and two basis points on the 91-day, 182-day and 364-day maturities respectively, to 4.72%, 4.85% and 5.04%.
The stipulated cut-off rate on the 364-day maturity was increased further by four basis points to 5.09%, while the yield rates of the 91-day and 182-day maturities will be decided below the level of the 364-day maturity at the auction.
The total secondary market Treasury bond/bill transacted volumes for 15 February was Rs. 1.75 billion.
In the money market, overnight surplus liquidity was seen decreasing further to Rs. 148.10 billion yesterday, while weighted average rates on call money and repo remained mostly unchanged at 4.53% and 4.55% respectively.
Rupee remains mostly unchanged
In Forex markets, the USD/LKR rate on spot contracts was seen trading within a range of Rs. 194.75 to Rs. 195.00 yesterday, while more active one-week forward contracts were seen closing the day at Rs. 196.00/198.00 in comparison to its previous day’s closing of Rs. 196.00/197.00.
The total USD/LKR traded volume for 15 February was $ 33.65 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
