The secondary bond market saw its yields closing the week ending 19th February mostly unchanged in comparison to its previous week’s closings, subsequent to increasing during the first half of the week while reversing four consecutive weeks of increases.
The liquid maturities of 15.12.22, 15.09.24, 01.12.24 and 15.01.26 saw its yields increasing to weekly highs of 5.85%, 6.80%, 6.85% and 7.12% in comparison to its previous wees closing levels of 5.60/65, 6.55/63, 6.60/65 and 6.95/20.
The increase in the weekly Treasury bill weighted average rates for a third consecutive week coupled with an undersubscribed auction for a fourth consecutive week were seen as the main reasons behind the increase. However, renewed buying interest at these levels led to a downward momentum as yields were seen decreasing once again to hit intraweek lows of 5.70%, 6.60% each and 7.03% on the said maturities.
Activity across the yield curve saw maturities of 2021’s (i.e. 01.05.21, 01.08.21 & 15.10.21), 01.10.22, 15.01.23, mid 2023’s (i.e. 15.05.23, 15.07.23, 01.09.23, and 01.10.23), 15.12.23, 2024’s (i.e. 15.06.24 & 01.08.24), 2025’s (i.e. 15.03.25 & 01.05.25), 01.02.26, 15.08.27, 01.09.28 and 15.05.30 been traded at levels of 4.73% to 4.93%, 5.65% to 5.67%, 5.85% to 5.90%, 6.00% to 6.08%, 6.05% to 6.20%, 6.70% to 6.75%, 6.79% to 6.95%, 7.03% to 7.18%, 7.36%, 7.85% to 8.05% and 7.95% to 8.30%.
In money markets, the total outstanding market liquidity was registered at Rs.165.29 billion while the weighted average rates on overnight call money and repo remained mostly unchanged to average 4.54% and 4.56% respectively for the week. The CBSL’s holding of Gov. Security’s stood at Rs.784.27 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd