Government Securities Market (Week ended February 17, 2023)

19 February, 2023

The bearish sentiment that prevailed in the bond market during the beginning of week ending 17th February, turned positive towards the latter part of the week, on news regarding IMF’s Extended Fund Facility (EFF) to Sri Lanka. However, the weekly Treasury Bill auction was undersubscribed with the successful bids received being only Rs. 78.05 billion as against an offered amount of Rs. 85.00 billion.

In the meantime, the secondary bond market witnessed moderate activity during the early part of the week, with yields of the 15.01.25, 15.05.26 and two 2027’s (i.e., 01.05.27 & 15.09.27) maturities increasing to highs of 33.00%, 29.90% and 29.50% respectively, before once again dipping to lows of 32.50%, 29.80%, 29.20% and 29.15%, backed by renewed buying interest.

In money markets, the weighted average rates of call money and repo transactions carried out during the week was 15.50% each.

(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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