Bond yields increase on moderate trading

Friday, 25 March 2022 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary market bond yields reflected an upward movement yesterday as the liquid maturity of 01.08.24 hit an intraday high of 15.10% against its previous day’s closing level of 14.50/00. In secondary market bills, the latest 91-day bill changed hands at levels of 12.20% to 12.30%.

The total secondary market Treasury bond/bill transacted volume for 23 March 2022 was Rs. 34.28 billion.

In money markets, the weighted average rates on overnight Call money and REPO were at 7.50% each as an amount of Rs. 580.20 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 7.50%. The net liquidity deficit was registered at Rs. 572.68 billion yesterday as an amount of Rs. 107.52 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 6.50%.

Furthermore, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 100.00 billion by way of a 7-day reverse Repo auction at a weighted average rate of 7.50%.

Forex market

In the forex market, the overall activity remained moderate yesterday while limited trades were seen on the spot contracts at levels of 290.00.

The total USD/LKR traded volume for 23 March 2022 was $ 51.00 million.

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