Click here to view the article
Daily report for the 05th September 2024 – Courtesy Wealth Trust Securities Ltd
- Secondary Bond Market Quiet; Yields Edge Up Further
- Secondary Market Bills See Demand
- Rupee appreciate marginally
The secondary bond market yesterday saw yields edge up albeit on thin transaction volumes and sparse activity as market participants were seen taking a wait-and-see approach amidst the prevailing uncertainty stemming from the upcoming election.
Accordingly, only selected maturities were seen trading. The 15.12.27 maturity was observed changing hands at the rate of 12.20%. The 15.02.28, 01.07.28 and 15.12.28 at the rates of 12.60%, 12.90% and 13.00%-13.01% respectively.
In contrast, the secondary bill market was moderately active. Shorter tenor bills maturing in September were seen changing hands at the rate of 9.10%. Similarly, December 2024 (approximately 3 months) March 2025 (approximately 6 months) were seen trading at the rates of 9.60% to 9.70% and 9.95% on the back of sizeable volumes.
The total secondary market Treasury bond/bill transacted volume for 04th September was Rs. 62.05 billion.
In money markets, the weighted average rate on overnight call money was at 8.53% and repo was at 8.72%.
The net liquidity surplus stood at Rs. 88.86 billion yesterday as an amount of Rs. 108.86 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25%.
Further, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 20.00 billion at a weighted average rate of 8.50%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts appreciated marginally to close the day at Rs. 298.80/298.90 against its previous day’s closing level of Rs. 298.90/299.00.
The total USD/LKR traded volume for 04th September was US $ 48.03 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)