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Daily report for the 16th January 2025 – Courtesy Wealth Trust Securities Ltd
Sideways Momentum Continues in the Secondary Bonds Market
The secondary bonds market yesterday saw yields continue to move in range bound trading, closing broadly steady, while activity and transaction volumes were seen at moderate levels. The market was seen remaining in a consolidation phase.
The 2026 tenors continued to buck the trend and saw rates continue to decline, with the 15.05.26, 01.06.26 and 15.12.26 maturities seen trading at the rates of 9.05%, 9.05%-9.02% and 9.40%-9.37%. The early 2028 tenor 15.02.28 and 15.03.28 maturities were seen trading within the range of 10.18%-10.15%. The mid-2028 tenor 01.05.28 was seen changing hands within the ranges of 10.31%-10.28%. The late-2028 tenor 15.10.28 maturity was seen transacting at the rate of 10.40%. The 15.10.30 maturity traded at the rate of 11.27%.
The total secondary market Treasury bond/bill transacted volume for 15th January 2025 was Rs. 72.79 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.00% and 8.06% respectively.
The net liquidity surplus stood at Rs. 131.47 billion yesterday. No funds were withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 131.47 billion was deposited at the Central Banks SDFR (Standard Deposit Facility Rate) of 7.50%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating to Rs. 296.35/296.50 as against its previous day’s closing level of Rs. 295.60/296.00.
The total USD/LKR traded volume for 15th January, 2025 was US $ 105.95 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)