Upward momentum in the bond market continues
The start of a new trading week saw the upward momentum in the secondary bond market yields continue, mainly on the liquid maturity of 15.10.27, as its yield increased to 11.50% against its previous day’s closing levels of 11.32/38 while overall market recorded thin trading volumes. In secondary bills, 28th January maturity was seen changing hands at levels of 7.18% and 7.25%.
The total secondary market Treasury bond/bill transacted volume for 17th December 2021 was Rs.2.47 billion.
In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs.34.35 billion and Rs.3.25 billion by way of overnight and 3 day repo auctions at weighted average rates of 5.99% and 5.98% respectively while an amount of Rs.69.65 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5.00%. The net liquidity deficit was registered at Rs.331.42 billion yesterday as an amount of Rs.438.66 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6.00%. The weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.91% and 6.00% respectively.
USD/LKR
In the Forex market, the overall market remained inactive.
The total USD/LKR traded volume for 17th December 2021 was US $ 34.95 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)