Government Securities Market (Week ended June 17, 2022) | Sunday Observer

Government Securities Market (Week ended June 17, 2022)

19 June, 2022

The activity levels in the secondary bill and bond market reduced during the week ending June 17 as most market participnats opted to be on the sidelines while yields increased.

On the back of limited activity, selling interest on the liquid maturities of 01.06.25, 01.05.27 and 15.01.28 saw its yields hit weekly highs of 20.50%, 20.15% and 20.75% againts its previous weeks closing levels of 19.90/20, 19.75/00 and 20.00/10. Secondary bill maturities of September 2022 and May 2023 also traded at highs of 21.00% and 22.27% as well.

Nevertheless, the positive momentum at the weekly bill auction continued as weighted average rates decreased sharply for a fourth consecutive week. The market favourite 91-day bill registered the sharpest drop of 118 basis points to 20.73% closely followed by the 182-day and 364-day bills by 99 and 109 basis points to 21.90% and 22.04%.

The Domestic Operations Department (DOD) of CBSL was seen conducting auctions for outright sales of Treasury Bills on Thursday for durations ranging from 189 days to 259 days, totaling Rs.25 billion. However, only an amount of Rs.0.50 billion was sold on the 203 day maturity at a weighted average of 21.90%.

In money markets, the weighted average rates on call money and repo stood at 14.50% each for the week while the total outstanding liquidity deficit reduced to Rs.629.00 billion by the end of the week against its previous weeks of Rs.680.84 billion.

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

Courtesy: Wealth Trust Securities Ltd