Government Securities Market (Week ended August 19, 2022)

21 August, 2022

The bearish or dull sentiment witnessed in the secondary bond market during the previous week continued during the week ending August 19 as well with yields fluctuating within a narrow range on the back of thin volumes. This was despite the weekly Treasury Bill auction getting fully subscribed again while the Central Bank of Sri Lanka was seen holding its policy rates steady at 14.50% and 15.50% on its Standing Deposit Facility Rate (SLDR) and Standing Lending Facility Rate (SLFR) respectively.

The limited activity was seen on the liquid 01.06.25 maturity within the range of 27.80% to 28.40% against its previous weeks closing level of 27.50/28.25. In addition, the 01.08.24 and 15.07.29 maturities were seen changing hands at 28.50% and 27.20% respectively as well. In the secondary bill market, bills maturing in February, July and August 2023 traded within the range of 28.75% to 29.25%.

In money markets, the weighted average rates on call money and repo stood at 15.50% each for the week while the CBSL’s holding of Gov. Security’s decreased further to Rs. 2,230.02 billion against its previous weeks of Rs. 2,260.13 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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