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Daily report for the 08th July 2024 – Courtesy Wealth Trust Securities Ltd
- Secondary Bond Market starts off slow; Yields stable
- Rs 138 Bn T-Bond auction details announced
- Rupee broadly steady
The secondary bond market kicked off the trading week on a dull note, with market participants taking a cautious approach ahead of this week’s Treasury Bond auction. The market was at a complete standstill for much of the day, with only sparse trades observed on thin overall transaction volumes. However, yields were seen holding broadly steady.
Accordingly, limited trades were observed on selected maturities with 15.02.28 and 15.09.29 maturities transacting at 11.85% and 12.00% to 12.03% respectively.
In secondary market bills, September maturities were seen changing hands down from intraday highs of 9.91% to lows of 9.85% on the back of healthy volumes.
The details of the upcoming round of Treasury Bond auctions due to be held this Thursday, the 11th of July, were announced. The auction will comprise of Rs. 58.00 billion from a bond due on 15th December 2027 bearing a coupon of 11.25% and Rs 80.00 billion from a bond due on 01st December 2031 bearing a coupon of 12.00%.
The total secondary market Treasury bond/bill transacted volume for 05th July was Rs. 9.86 billion.
In money markets, the weighted average rate on overnight call money was at 8.74% and repo was at 9.05%.
The net liquidity surplus stood at Rs. 125.39 billion yesterday as an amount of Rs. 2.94 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50% against an amount of Rs. 137.56 billion been deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.50%.
Further, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 9.23 billion at the weighted average rate of 8.59%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day stable, at Rs. 304.35/304.50 against its previous day’s closing level of Rs.304.45/304.75.
The total USD/LKR traded volume for 05th July was US $ 41.30 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
