Government Securities Market (Week ended April 1, 2021) | Sunday Observer

Government Securities Market (Week ended April 1, 2021)

4 April, 2021

The sluggish sentiment in the secondary bond market saw limited trades taking place across the yield curve within a narrow range during the shortened trading week ending 01st April 2021.

The continued under-subscription at the primary bill and bond auctions along with the drop in liquidity was seen as the reasons behind this sentiment.

The limited trades were witnessed on the maturities of 2022’s (i.e. 01.10.22 and 15.12.22), 15.01.23, other 2023’s (i.e. 15.05.23, 15.07.23 and 15.11.23), 15.03.24, other 2024’s (i.e. 01.08.24 and 01.12.24) and 15.09.34 at level of 5.85% to 5.88%, 5.95%, 6.25% to 6.35%, 6.50%, 6.60% to 6.65% and 8.35% respectively. In the secondary bill market, April 2021 maturities, May 2021 maturities, June to July 2021 maturities and October to December 2021 maturities traded at levels of 4.70%, 4.85% to 4.88%, 4.90% to 5.05% and 5.08% to 5.09% respectively.

In money markets, the total outstanding market liquidity was seen decreasing during the week to a low of Rs.86.33 billion against its previous weeks closing of Rs.127.70 billion while CBSL’s holding of Gov. Security’s increased Rs.844.02 billion against its previous weeks of Rs.842.25 billion. The weighted average rates on overnight call money and repo remained mostly unchanged to average 4.62% and 4.64% respectively for the week.

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

Courtesy: Wealth Trust Securities Ltd