The secondary bond market was seen closing the week ending June 10, 2022 on a bullish note subsequent to yields seesawing during the week on the back of impressive primary auction results.
Yields seesawed mainly on the liquid maturities of 01.06.25 and 15.01.28 as selling interest on the back of profit taking saw yields increase to weekly highs of 20.50% each during the early part of the week while renewed buying interest leading into the bond auctions and subsequent to it saw it dip again to 19.90% each. Secondary bill market too witnessed the same trend as May-June 2023 maturities hit lows of 21.30% against its weeks high of 23.40%.
At the weekly Treasury Bill auction, weighted average rates continued its steep decreasing trend reflecting drops of 84, 71 and 62 basis points while the two Treasury Bond auctions on Friday recorded impressive outcomes, as the total offered amount of Rs.50 billion was successfully accepted at the first phase of the auctions.
The maturity of 01.06.2025 recorded a weighted average rate of 20.30% while the 15.01.2028 maturity fetched a weighted average rate of 20.19%. This in turn will see a further 20% been offered on each maturity, through a direct issuance window, until close of business today. (i.e. 4.00 p.m. on 13.06.22).
In money markets, the total outstanding liquidity deficit at the end of the week decreased further to Rs. 680.84 billion against its previous weeks Rs. 686.64 billion while CBSL’s holding of Govt. Securities decreased to Rs.1,969.82 against its previous weeks closing levels of Rs.1,964.91 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd