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Daily report for the 19th September 2024 – Courtesy Wealth Trust Securities Ltd
- Election mood keeps the bond market at bay
- Overnight liquidity turns positive once again
- Rupee dips further
Activity in the secondary bond market slowed yesterday with two-way quotes across the yield curve remaining broadly steady ahead of the presidential election. Limited trades were witnessed on the two 2027’s (i.e. 01.05.27 &15.09.27) and 15.06.29 maturities at levels of 13.07% to 13.10% and 13.85% respectively.
In secondary bills market, November 2024, December 2024 and the latest 182-day bill changed hands at level of 10.25%, 10.40% to 10.75% and 11.00% respectively.
The total secondary market Treasury bond/bill transacted volume for 18th September 2024 was Rs. 75.87 billion.
In money markets, the net overnight money market liquidity reversed sharply to a surplus Rs.34.66 billion yesterday against its previous day’s deficit of Rs 31.81 billion. An amount Rs.87.66 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25% against an amount of Rs.12.42 billion been withdrawn from its SLFR (Standard Lending Facility Rate) of 9.25%. The weighted average rates on call money and repo stood at 8.62% and 8.82% respectively.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for a volume of Rs. 40.58 billion at a weighted average rate of 8.57%.
Forex Market
In the Forex market, the USD/LKR on spot contracts depreciated further yesterday to close the day at Rs.304.50/304.80 against its previous day’s closing level of Rs.303.75/302.85.
The total USD/LKR traded volume for 18th September was US $ 51.60 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)