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Daily report for the 16th October 2024 – Courtesy Wealth Trust Securities Ltd
- Secondary Bond Market Activity Moderates; Yields Edge Up Marginally
- Rupee appreciates
The yields in the secondary bond market edged up slightly on Wednesday, the 16th October. Market activity was subdued and transaction volumes were relatively thin.
Accordingly limited trades were observed on selected maturities. The shorter tenor 01.02.26 and 15.05.26 maturities traded at the rates of 10.20% and 10.20%-10.50% respectively. The 15.09.27 and 15.12.27 maturities traded within the range of 11.20%-11.30%. The 01.07.28 maturity traded at the rate of 11.70% while the 15.09.29 maturity changed hands at the rate of 11.90%. Additionally, the 01.10.32 maturity changed hands within the range of 12.15%-12.36%.
The total secondary market Treasury bond/bill transacted volume for 15th October was Rs. 11.89 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.55% and 8.66% respectively. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight repo auction for Rs. 25.00 billion at the weighted average rate of 8.41%p.a.
The net liquidity surplus stood at Rs. 119.88 billion yesterday. Rs 0.11 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 9.25%, while an amount of Rs. 144.99 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day higher at Rs. 292.90/293.05 against its previous day’s closing level of Rs. 293.30/293.60.
The total USD/LKR traded volume for 15th October was US $ 66.00 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)