Government Securities Market (Week ended October 14, 2022)

16 October, 2022

The secondary bond market activity was at a standstill during the first half of the shortened trading week ending 14th October and picked up marginally towards the latter part of the week following the Treasury bond auction outcomes on Thursday. The limited activity was witnessed on the maturities of 01.07.25 and 15.07.29 within a narrow range of 31.93% to 31.95% and 30.90% to 30.91% respectively.

The outcome at the primary auctions further supported the dull activity levels, where the bill auctions conducted on Wednesday saw weighted average rates on the 91-day and 182-day maturities increasing further by 71 and 192 basis points respectively in comparison to its previous weighted average rates.Furthermore, the weighted average rate on the 3-year bond maturity increased by 98 basis points at its auction conducted on Thursday as well.

In money markets, the weighted average rates on overnight call money and repo were at 15.50% each for the week while the total outstanding liquidity deficit was registered at Rs.515.51 billion by the end of the week against its previous weeks of Rs.517.43 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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