Government Securities Market - (Week ended December 24, 2020) | Sunday Observer

Government Securities Market - (Week ended December 24, 2020)

27 December, 2020

The lethargic sentiment witnessed in the secondary bond market during the previous week continued during the shortened trading week ending 24th December as well with yields fluctuating within a narrow range on the back of thin volumes.

The limited activity was seen on the most sorted maturities of 15.12.22, 2023’s (i.e. 15.07.23 & 01.09.23), 2024’s (i.e. 15.09.24 & 01.12.24) and 15.05.30 at levels of 5.74% to 5.75%, 5.99%, 6.00% to 6.02%, 6.44%, 6.48% to 6.52% and 7.78% respectively against its previous weeks closing level of 5.70/75, 5.90/00, 5.93/00, 6.40/48, 6.45/55 and 7.75/80. In addition, 15.12.21, further 2024’s (i.e.01.01.24 and 15.03.24 and 01.03.26 were seen changing hands at levels of 5.00%, 6.17% to 6.20%, 6.25% to 6.26% and 6.80% respectively as well. In the secondary bill market, bills maturing in July, October and December 2021 traded at levels of 4.75%, 4.87% and 4.92% respectively.

The same sentiment was even witnessed at the weekly primary bill auction as only 51.80% was accepted in total against its total offered amount of Rs.40 billion. The weighted average rates were registered in line with its stipulated cut off rates of 4.67%, 4.78% and 5.03% respectively on the 91-day, 182-day and 364-day maturities.

Meanwhile, foreign outflows from rupee bonds continued for a fourth consecutive week to the tune of Rs.1.18 billion for the week ending December 23, 2020, accumulating a total outflow of Rs. 1.76 billion over the past four weeks.

In the money market, the weighted average rates on overnight call money and repos remained mostly unchanged at 4.54% and 4.58% respectively as the total outstanding market liquidity stood at a surplus of Rs.231.10 billion. The CBSL’s holding of Govt. Securities stood at Rs. 642.10 billion.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)

Courtesy: Wealth Trust Securities Ltd?