The upward movement in the secondary bond market continued during the week ending April 21, 2023, despite the weekly Treasury bill auction receiving full subscription, albeit at higher yields and foreign portfolio inflows continuing for a 10th consecutive week.
At the weekly auction, the total offered amount of Rs. 90 billion was successfully taken up at its first phase while weighted averages increased for a second consecutive week. The foreign holding in Rupee government securities increased further by Rs.14.17 billion for the week ending April 20, 2023 while its overall tally stood at Rs. 116.60 billion.
Meanwhile, the National Consumer Price Index - NCPI (Base: 2021=100) or National inflation for the month of March came in at 49.2% on its point to point as against 53.6% recorded in February.
The bond market activity centred on the liquid maturities of 01.07.25, 15.05.26 and two 2027’s (i.e., 01.05.27 and 15.09.27) as its yields increased to intraweek highs of 29.15%, 27.27%, 27.00% and 26.90% against its previous week’s closing levels of 27.50/28.00, 26.50/27.00 and 25.80/26.00 each.
Maturities of 15.01.28, 15.07.29 and 01.07.32 changed hands at levels of 25.00% to 25.05%, 25.25% to 25.27% and 22.50% to 23.00% as well. This resulted in an upward shift of the overall yield curve.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd