The renewed buying interest in the secondary bond market towards the latter part of the week ending March 18, 2022 saw yields decreasing mainly on the liquid maturities of 01.08.24 and 15.06.27 to hit weekly lows of 14.30% and 15.05% against its previous weeks closing level of 14.75/00 and 15.00/25. Two-way quotes across the rest of the yield curve were seen reducing as well. This in turn led to a parallel shift downwards of the overall yield curve for the first time in six weeks.
This is despite the outcome of the weekly Treasury Bill auction, at where weighted average rates soared once again.
Meanwhile, the SLDB (Sri Lanka Development Bonds) auction of US $ 50 million was fully subscribed for the first time in 08 months, solely on the six-month maturity while the total accepted amount shot up to US $ 175.08 million due to the direct issuance window. This was the highest amount accepted from a SLDB auction in over 11 months as well.
In money markets, the total outstanding liquidity deficit decreased to Rs.613.23 billion by the end of the week against its previous weeks of Rs.703.57 billion while CBSL’s holding of Gov. Security’s stood at Rs.1,699.98 billion against its previous weeks of Rs.1521.70 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd