The lethargic sentiment witnessed in the secondary bond market during the previous week continued during the shortened trading week ending 24th December as well with yields fluctuating within a narrow range on the back of thin volumes.
The limited activity was seen on the most sorted maturities of 15.12.22, 2023’s (i.e. 15.07.23 & 01.09.23), 2024’s (i.e. 15.09.24 & 01.12.24) and 15.05.30 at levels of 5.74% to 5.75%, 5.99%, 6.00% to 6.02%, 6.44%, 6.48% to 6.52% and 7.78% respectively against its previous weeks closing level of 5.70/75, 5.90/00, 5.93/00, 6.40/48, 6.45/55 and 7.75/80. In addition, 15.12.21, further 2024’s (i.e.01.01.24 and 15.03.24 and 01.03.26 were seen changing hands at levels of 5.00%, 6.17% to 6.20%, 6.25% to 6.26% and 6.80% respectively as well. In the secondary bill market, bills maturing in July, October and December 2021 traded at levels of 4.75%, 4.87% and 4.92% respectively.
The same sentiment was even witnessed at the weekly primary bill auction as only 51.80% was accepted in total against its total offered amount of Rs.40 billion. The weighted average rates were registered in line with its stipulated cut off rates of 4.67%, 4.78% and 5.03% respectively on the 91-day, 182-day and 364-day maturities.
Meanwhile, foreign outflows from rupee bonds continued for a fourth consecutive week to the tune of Rs.1.18 billion for the week ending December 23, 2020, accumulating a total outflow of Rs. 1.76 billion over the past four weeks.
In the money market, the weighted average rates on overnight call money and repos remained mostly unchanged at 4.54% and 4.58% respectively as the total outstanding market liquidity stood at a surplus of Rs.231.10 billion. The CBSL’s holding of Govt. Securities stood at Rs. 642.10 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd