A lethargic sentiment was witnessed in the secondary bond market during the holiday shortened trading week ending May 28, while yields increased marginally on the back moderate volumes changing hands.
The limited activity was seen on the most sorted maturities of 15.11.23, 01.12.24 and 01.05.25 at levels of 6.25% to 6.30%, 6.67% and 7.00% to 7.01% respectively against its previous weeks closing levels of 6.25/30, 6.60/65 and 6.92/00. In addition, 15.05.23, 15.07.23 and 01.08.26 were seen changing hands at levels of 6.05% to 6.06%, 6.15% and 7.50% as well. In the secondary bill market, 20th and August 27, 2021 maturities traded at levels of 5.10% to 5.13%.
Nevertheless, the positive sentiment witnessed at the weekly Treasury bill auctions continued, as the total accepted volume increased to 96.38% of its total offered volume against its previous weeks 90.28%.
In money markets, weighted average rates on overnight call money and repo increased marginally to average 4.68% and 4.72% respectively for the week as the total outstanding liquidity surplus decreased further to Rs.111.99 billion. The CBSL’s holding of Gov. Security’s was recorded at Rs. 856.65 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd