The eleven year bond (15.01.2033) yield was seen hitting 13.00% during its secondary market trading on Friday, January 28 following its primary auction outcome at where it recorded a weighted average of 12.45%.
In addition, the three year and six month bond maturity of 01.08.2025 recorded a weighted average of 11.49%, similar to its pre-auction rate of 11.40/50. The two maturities saw a total amount of Rs.50 billion on offer while an amount of Rs. 41.39 billion was accepted in total. A direct issuance window of 20% of the offered amount on the 15.01.2033 maturity was opened until close of business of the day prior to settlement (i.e. 4.00 pm on 31.01.2022).
In secondary market bond trading during the week ending 28th January, yields were seen edging up, mainly on the three year maturities of 2025’s (i.e. 15.03.25 and 01.05.25) as selling interest saw it hit highs of 11.40% and 11.41% respectively against its weeks opening levels of 11.05% and 11.20%. Furthermore, maturities of 2022’s (i.e 01.10.22 and15.12.22), 2024’s (i.e 15.03.24, 15.06.24 and 15.09.24), other 2025’s (i.e 01.08.25 and 15.10.25) and 01.05.28 were seen changing hands at levels of 9.25% to 9.37%, 10.25% to 10.43%, 11.29% to 11.50% and 11.75% respectievly as well.
In money markets, the total outstanding liquidity deficit increased during the week to register Rs.558.96 billion by the end of the week against its previous weeks Rs.543.37 billion while CBSL’s holding of Gov. Securities increased by Rs.18.31 billion to Rs.1,566.13 billion. The weighted average rates on overnight call money and repo was 6.47% and 6.50% respectively for the week.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd