Government Securities Market (Week ended February 18, 2022)

20 February, 2022

The activity in the secondary bond market slowed down considerably during the shortened trading week ending 18th February 2021. The limited trades witnessed took place on the 2025’s (i.e. 15.03.25 and 01.05.25), 15.06.27 and 15.01.33 maturities within the range of 11.07% to 11.12%, 12.00% to 12.10% and 12.94% to 12.96.

Nevertheless, the primary Treasury bill market continued with its positive sentiment due to persistent buying interest solely on the 91 day bill as its weighted average was seen edging down further during the week. The weighted average rate on the 91-day and 364-day maturities were seen dipping by two basis points each to 8.50% and 8.57% respectively while weighted average rate on the 182 day bill remained steady at 8.54%. In the secondary bill market, April 8, May 20 and June 10 were traded at levels of 8.00%, 8.545% to 8.58% and 8.60% to 8.65%, subsequent to the auction.

In money markets, the total outstanding liquidity deficit increased further during the week to register Rs.693.54 billion by the end of the week against its previous weeks Rs.617.99 billion while CBSL’s holding of Gov. Securities decreased further to Rs.1,511.20 billion against its previous weeks of Rs.1541.53 billion. The weighted average rates on overnight call money and repo was 6.48% 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

– Sunday Observer Sri Lanka

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