The overall activity in the secondary bond market moderated once again during the shortened trading week ending April 30, 2021 with most market participants opting to be on the sidelines, leading to a bearish sentiment. Limited trades were witnessed on the maturities of 15.10.21, 2022’s (i.e. 01.10.22 and 15.12.22), 15.01.23, 15.07.23, 15.10.26, 01.08.26 and 2027’s (i.e. 15.01.27 and 15.10.27) at levels of 5.15% to 5.18%, 5.95% to 6.03%, 6.00%, 6.45% to 6.50%, 7.40% to 7.42% and 7.83% to 7.90%.
The bearishsentiment was supported by the outcome of the weekly Treasury bills auction, at where the total accepted amount was seen decreasing for the first time in three weeks to Rs.29.89 billion against a total offered amount of Rs.45 billion each week. In addition, the outcome at the Treasury bond auctionssaw only an amount of Rs.44.55 billion or 55.69% accepted in total against a total offered amount of Rs.80 billion.
In money markets, weighted average rates on overnight call money and repo remained mostly unchanged to average 4.66% and 4.68% respectively for the week as the total outstanding liquidity surplus was registered at Rs.151.31 billion. The CBSL’s holding of Gov. Security’s stood at Rs.888.70 billion.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
Courtesy: Wealth Trust Securities Ltd