Activity in the secondary bond market remained moderated during the week ending 04th June 2021 as most market participants continued to be on the sidelines. Limited activity was witnessed on the maturities of 2022’s (i.e. 01.10.22, 15.11.22 & 15.12.22), 2023’s (i.e. 15.01.23, 15.03.23, 15.07.23, 01.09.23 & 15.11.23), 01.05.25, 2026’s (i.e. 15.01.26 & 01.02.26) and 15.08.27 at levels of 5.62% to 5.70%, 5.65% to 5.70%, 5.80%, 5.78%, 6.00%, 6.12% to 6.14%, 6.22%, 6.28% to 6.33%, 7.00% to 7.01%, 7.30% to 7.34%, 7.30% and 7.53%.
Mixed results at the primary auctions further supported the dull sentiment, where the two bond auctions conducted on Tuesday saw its combined total offered amount of Rs.25 billion successfully subscribed at its first phase of the auctions while recording impressive weighted averages. Nevertheless, only 60.24% of its total offered volume was accepted at the weekly Treasury bill auction on Wednesday against its previous weeks 96.38% while the cut off level on the 364 day bill was increased by 03 basis points to 5.21%.
The Colombo Consumer Price Index (CCPI) increased 4.5% on its point to point for the month of May against 3.9% recorded in April.
In money markets, weighted average rates on overnight call money and repo edged up further to average 4.71% and 4.73% respectively for the week. The CBSL’s holding of Gov. Security’s increased marginally to Rs. 868.57 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd