The trading activity in the secondary bond market dried up during the short trading week ending 12th March 2021, subsequent to both primary auctions getting undersubscribed.
The weekly Treasury Bill auction saw only an amount Rs.34.74 billion accepted in total against its total offered amount of Rs.45 billion while the three Treasury bond auctions saw Rs.54.36 billion accepted in total against an offered total of Rs.60 billion.
The limited activity during the week centered on the maturities of 2022’s (i.e. 01.10.22 and 15.12.22), 2023’s (i.e. 15.07.23 and 01.09.23), 2024’s (i.e. 15.09.24 and 01.12.24) and 2026’s (i.e. 15.01.26 and 01.02.26) within the range of 5.70% to 5.85%, 6.15% to 6.20%, 6.50% to 6.62% and 7.00% to 7.05% respectively while yields closed the week broadly steady against its previous weeks closing levels.
In the secondary bill market, April, May, June, July, August and September 2021 maturities and January 2022 maturities traded at levels of 4.68%, 4.90% to 5.02% and 5.10%.
In money markets, the weighted average rates on overnight call money and repo remained mostly unchanged to average 4.55% each for the week while the total outstanding market liquidity increased further to Rs.181.37 billion in comparison to its previous week of Rs.172.82 billion. The CBSL’s holding of Gov. Security’s increased by Rs.8.24 billion to Rs.810.04 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd