The overall activity in the secondary bond market moderated during the week ending 18th June 2021 as most market participants opted to be on the sidelines. Nevertheless, yields of the 2023’s (i.e.15.01.23, 15.03.23, 15.07.23, 01.09.23 & 15.11.23) and 15.01.26 maturities were seen decreasing marginally during the week to hit lows of 5.79%, 5.85%, 6.08%, 6.12%, 6.20%, and 7.27% respectively. In addition maturities of 01.08.21, 01.10.22, 15.12.22 and 01.05.28 changed hands at levels of 5.05%, 5.67% to 5.70%, 5.70% to 5.74% and 8.00% respectively as well.
However, the total accepted amount at the weekly Treasury bill auction decreased considerably to an eleven week low of 39.76% of its total offered amount. Limited trades were also witnessed in the secondary bill market with June to July 2021 maturities, September 2021 and December 2021 maturities changing hands at levels of 4.95% to 5.00%, 5.00% to 5.10% and 5.18% respectively.
The daily secondary market Treasury bond/bill transacted volumes for the first four trading days of the week averaged Rs.7.67 billion.
In money markets, weighted average rates on overnight call money and repo were seen increasing to average 4.82% and 4.84% respectively for the week as the total outstanding liquidity surplus decreased to a nine week low of Rs.94.09 billion against its previous weeks Rs.110.00 billion. Meanwhile, CBSL’s holding of Gov. Security’s increased further to Rs.896.24 billion against its previous weeks of Rs.874.34 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd