91-day T-bill W.A. yield decreases

By Wealth Trust Securities

The 91-day Treasury bill weighted average (W.A.) rate was seen decreasing for the first time in 40 weeks, reflecting a considerable drop of 25 basis points to 8.18% at its weekly auction conducted yesterday. 

It dominated the auction once again as it represented 97.04% of the total offered and accepted volume of Rs. 66 billion. However, weighted average rates on the 182-day and 364-day bills recorded marginal increases of five and eight basis points, respectively, to 8.21% and 8.26%. The total bids to offer ratio stood at 3.57:1. 

However, activity in the secondary bond market remained at a standstill yesterday. Nevertheless, buying interest in the secondary bill market saw the 91-day bill change hands at 7.80%, post-auction.

The total secondary market Treasury bond/bill transacted volume for 1 November was Rs. 3.27 billion. 

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 22.35 billion and Rs. 10 billion by way of overnight and seven-day repo auctions, respectively, at weighted average rates of 5.99% each while an amount of Rs. 78.04 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 5%. The net liquidity deficit increased to Rs. 175.94 billion yesterday as an amount of Rs. 286.33 billion was withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 6%. The weighted average rates on overnight call money and repo remained steady at 5.93% and 5.97%, respectively.

USD/LKR 

In the forex market, the USD/LKR rate on spot contracts traded within a narrow range of Rs. 202.97 to Rs. 203 yesterday.

The total USD/LKR traded volume for 1 November was $ 55.50 million. 

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