Government Securities Market (Week ended April 22, 2022)

24 April, 2022

Activity in the secondary bond market remained sluggish during the week ending April 22, with market participants continuing to be on the side lines. Limited activity was witnessed, consisting of the 2025’s (i.e. 15.03.25 and 01.08.25), 15.01.26 and 15.03.30 maturities at levels of 22.00% to 22.50%, 19.80% and 21.00% respectively.

Nevertheless, the secondary bill market remained active during the week with July and October 2022 maturities and April 2023 maturity trading at levels of 20.00% to 21.00%, 22.00% to 24.00% and 22.50% to 24.00%.

Meanwhile, at the weekly bill auction, the accepted amount decreased to a 32-week low of 49.30% of its total offered amount while weighted average rates increased across the board by 350, 204 and 100 basis points respectively to 23.21%, 24.77% and 24.36% on the 91-day, 182-day and 364-day maturities.

Furthermore, the National Consumer Price Index (NCPI base:2013=100) for the month of March spiked to a high of 21.50%, exceeding 20.00% for the first time in its history.

In money markets, the total outstanding liquidity deficit decreased to Rs.624.11 billion by the end of the week against its previous weeks of Rs.735.46 billion while CBSL’s holding of Gov. Security’s stood at Rs.1,870.65 billion against its previous weeks of Rs.1853.01 billion.

The weighted average rates on call money and repo remained mostly unchanged at 14.50% each 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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