The positive sentiment in the bond market continued during the shortened trading week ending 13th May 2021,as secondary market yields declinedfurther to reflect a marginal downward shift of the overall yield curve on a week on week basis.
Yields of the liquid maturities of 2022’s (i.e. 01.10.22 and 15.12.22), 2023’s (i.e. 01.09.23 and 15.11.23), 01.12.24 as well as the 01.05.25 and 01.08.26 hit weekly lows of 5.60%, 5.62%, 6.21%, 6.24%, 6.65%, 6.95% and 7.54% against its previous weeks closing levels of 5.63/70, 5.65/70, 6.20/30, 6.30/35, 6.70/72, 6.90/15 and 7.58/65.
15.11.22, 15.01.23, 15.03.23, 01.10.23, 15.12.23, 15.10.27 and 15.05.30 maturities were seen changing hands at levels of 5.62%, 5.70% to 5.73%, 5.95%, 6.25%, 6.30% to 6.31%, 7.70% and 8.10% respectively as well. Buying interest of T-bills in the secondary market resulted in the July, August, October and November 2021 bills changing hands within the range of 5.04% to 5.12%.
Meanwhile, the primary auction conducted during the week produced mixed results as the total accepted amount at the weekly T-bill auction decreased to a five week low of 44.70%. Nevertheless, the Treasury Bond auctions recorded a strong outcome as the two maturities consisting of 01.05.2025 and 01.05.2028 registered impressive accepted ratios of 100% and 95%.
In money markets, the total outstanding liquidity surplus decreased further to Rs.130.56 billion against its previous weeks Rs.135.17 billion while the weighted average rates on overnight call money and repo remained steady to average 4.66% and 4.69% respectively for the week. The CBSL’s holding of Govt. Securities increased by Rs. 3.65 billion to Rs. 874.02 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd