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Daily report for the 07th November 2024 – Courtesy Wealth Trust Securities Ltd
- Secondary Bond Market Yields Continue to Dip Down
- Upcoming Rs. 132.50 Bn T-Bond Auction Details Announced
- Rupee appreciates
Yields in the Secondary Bond Market continued to edge lower yesterday, driven by buying interest on popular liquid maturities. In particular, longer duration 2028 tenors saw strong demand push yields down. Meanwhile, market activity and transaction volumes were seen at healthy levels.
The 01.05.27 and 15.09.27 were seen trading lower at the rates of 11.20% and 11.30%. The 2028 tenors followed suit. The 15.03.28, 01.05.28, 01.07.28 and 15.12.28 maturities changed hands at the rates of 11.67%-11.65%, 11.70%, 11.75% and 11.85%-11.80%.
The upcoming Treasury Bond auction due next Tuesday, the 12th of November will have on offer Rs 85.00 billion from 01st May 2028 maturity bearing a coupon of 09.00% and Rs 47.50 billion from a 01st of October 2032 maturity bearing a coupon rate of 09.00%.
The total secondary market Treasury bond/bill transacted volume for 06th November was Rs. 113.30 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.56% and 8.72% respectively. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight and reverse repo auction for Rs. 10.95 billion at the weighted average rate of 8.49%.
The net liquidity surplus stood at Rs. 169.51 billion yesterday. No funds were withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 9.25%, while an amount of Rs. 180.46 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed up at Rs. 292.55/292.65 as compared to 292.80/292.90.
The total USD/LKR traded volume for 06th November was US $ 65.73 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)