The activity in the secondary bond market was at a standstill during the shortened trading week ending April 16, 2021 while yields were seen closing the week broadly steady in comparison to its previous week’s closings. The limited trades were seen on the maturities of 01.05.21, 15.10.21, 15.11.22, 15.07.23 and 15.11.23 at levels of 4.70%, 5.10%, 6.00%, 6.35% and 6.50%. In the secondary Bill market, July maturities were traded at a level of 5.00% to 5.10%.
Nevertheless, the total accepted amount at the weekly Treasury Bill auction was seen increasing to a six week high of Rs. 35.47 billion while the foreign holding in rupee bonds remained mostly unchanged at Rs. 6.20 billion for the week ending April 12, 2021.
In money markets, the total outstanding market liquidity was seen decreasing once again during the week to a low of Rs. 80.79 billion against its previous weeks closing of Rs. 106.77 billion while CBSL’s holding of Gov. Security’s decreased to Rs.898.28 billion against its previous weeks of Rs. 903.18 billion. The weighted average rates on overnight call money and repo remained mostly unchanged to average 4.64% and 4.67% for the week.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd