Government Securities Market (Week ended May 13, 2022)

15 May, 2022

The primary market yields increased while activity in secondary bond market moderated during the week ending May 13 as most market participants were seen on sidelines on the back of limited trading hours.

At the weekly Treasury Bill auction, weighted average rates were seen increasing across the board for the first time in three weeks while the total accepted amount fell below the total offered amount for the first time in three weeks as well.

The outcome of the Treasury Bond auctions saw its weighted averages come in higher than its previous round of auctions. The increases in weighted average rates were 152 basis points and 53 basis points on the 3 year and 5 year maturities respectively to 22.69% and 23.53%.

In secondary bond market, limited trades were seen on the maturities of 15.11.23 and 01.06.25 maturities at levels of 25.00% and 23.47% respectively while overall activity moderated during the week.

In money markets, the total outstanding liquidity deficit increased to Rs.711.56 billion by the end of the week against its previous weeks of Rs.708.77 billion while the CBSL’s holding of Govt. Securities was registered at Rs.1,911.04 billion against its previous weeks of Rs.1,869.84 billion.

(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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