Activity in the secondary bond market remained rather moderate during the week ending March 19, 2021 with no significant momentum generated.
The yields on the maturities of 15.12.22, 15.12.23 and 2027’s (i.e. 15.08.27 and 15.10.27) were seen increasing to weekly highs of 5.85%, 6.30% and 7.50% each respectively against its previous weeks closing levels of 5.75/80, 6.23/33, 7.35/45 and 7.45/55 on limited activity while yields were seen fluctuating within the range of 6.14% to 6.20%, 6.18% to 6.28%, 6.45% to 6.50%, 6.55% to 6.64%, 6.66% to 6.70% on the maturities of 15.07.23, 01.09.23, 15.03.24, 15.09.24 and 01.12.24 respectively.
Maturities of 15.03.23, 15.11.23, 01.01.24, other 2024’s (i.e. 15.06.24 and 01.08.24), 15.01.26 and 01.05.29 were seen changing hands within a tight range of 6.05% to 6.07%, 6.22% to 6.25%, 6.35% to 6.40%, 6.50% to 6.56%, 7.05% and 8.20% to 8.25% as well.
The sluggish sentiment was due to the outcome of the weekly Treasury Bill auction where the weighted average rates were seen edging up for a seventh consecutive week with only an amount of Rs. 25.82 billion been accepted in total against its total offered amount of Rs.45 billion. In addition, the drop in money market liquidity, where the total outstanding market liquidity was recorded at Rs.119.17 billion in comparison to its previous week of Rs.181.37 billion contributed to the sentiment.
The weighted average rates on overnight call money and repo remained mostly unchanged to average 4.55% and 4.57% respectively for the week while the CBSL’s holding of Gov. Security’s increased to Rs.824.36 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd