Weekly Yield movement & Volume
Bond market activity was very dull following last Wednesday’s (10th) bill auction which saw yield falling in a short tenor due to high demand. Today (17th Jan) primary bill auction saw yields of 182 days maturity dipping 9bps while 364 days maturity increased by 5bps.
Liquidity & CBSL Holdings
Market liquidity saw an enormous decline over past week while CBSL Holdings remained volatile over the past week but remained around the LKR 20-30B mark.
Foreigners remained net foreign seller for a 2nd consecutive week sold a further LKR 799M from foreign holding. However, with the overall outstanding Government Securities stock decreasing overall foreign holding percentage remained at 6.5% as at 10th Jan 2018.
Maturities for next Week
The Government securities market has Treasury Bill maturities on LKR22.4Bn which needs to be settled on 26th Jan 2018.