The trading activity in the secondary bond market remained rather moderate during the week ending March 26, 2021 as most market participants persisted to be on the side lines ahead of scheduled Treasury bond auctions for tomorrow, March 29.
The auction will have on offer Rs. 60 billion, consisting of Rs.25 billion of 15.11.2023, Rs. 20 billion of 15.01.2026 and Rs.15 billion of 01.05.2028. The maximum yields rate for acceptance for the said maturities was published at 6.30%, 7.05% and 7.60% respectively. The weighted average yields at the bond auctions conducted on 10th March 2021were 6.19%, 7.08% and 7.44% for the maturities of 01.09.2023, 01.02.2026 and 15.08.2027.
The weekly T-bill auction went undersubscribed for a third consecutive week as only an amount of Rs.11.55 billion was accepted in total against its total offered amount of Rs.45 billion.
In secondary bond markets, the limited activity during the week centered on the maturities of 2022’s (i.e. 01.10.22, 15.11.22 and 15.12.22), 15.01.23, other 2023’s (i.e. 15.05.23, 15.07.23 and 01.09.23), 01.01.24, mid 2024’s (i.e. 15.06.24 and 15.09.24) and 01.12.24 within the range of 5.80% to 5.88%, 5.93% to 5.95%, 6.15% to 6.22, 6.40% to 6.42%, 6.55% to 6.60% and 6.60% to 6.68% while in the secondary bill market, May and June 2021 maturities and September 2021 maturities traded at levels of 4.80% to 5.04% and 4.95% to 5.09%.
In money markets, the total outstanding market liquidity was seen decreasing further during the week to a low of Rs.100.67 billion against its previous weeks closing of Rs.119.18 billion, before increasing once again to close the week at Rs.127.70 billion. The weighted average rates on overnight call money and repo remained mostly unchanged to average 4.58% and 4.60% respectively for the week while the CBSL’s holding of Gov. Security’s increased further to Rs.842.25 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd