Accepted volume dips further at weekly bill auction

• Rs. 120 b bond auctions in focus

 By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday saw its total accepted volume dip further to a low of 58.30% of its total offered amount against its previous week 72.10% as the bid-to-offer ratio decreased to 1.39:1. The weighted average rate on the 182-day maturity reflected an increase of one basis point to 5.23%, while weighted average rates on the 91-day and 364-day maturities remained steady at 5.22% and 5.25% respectively. 

Activity in the secondary bond market was at a complete standstill yesterday as market participants continued to be on the side-lines ahead of today’s T-bond auctions.

The T-Bond auctions will see in total an amount of Rs. 120 billion on offer in lieu of a Rs. 125.41 billion maturity due on 1 August. The auction will consist of Rs. 30 billion of a 01.12.2024 maturity, Rs. 35 billion each of a 01.02.2026 and 01.05.2028 maturities and a further Rs. 20 billion of a 15.03.2031 maturity. Maximum yield rates for acceptance were published as 6.90%, 7.50%, 8.20% and 8.90% respectively. The weighted average yields at the bond auctions conducted on 13 July for the maturities of 15.11.2023 and 01.07.2028 were recorded at 6.36% and 8.04% respectively.

The total secondary market Treasury bond/bill transacted volume for 27 July was Rs. 1.70 billion.   

In money markets, the net liquidity surplus stood at Rs. 20.52 billion yesterday with an amount of Rs. 120.12 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 99.60 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo remained steady at 5.11% and 5.14% respectively.

USD/LKR   

In Forex markets, the overall market continued to remain inactive yesterday. The total USD/LKR traded volume for 27 July was $ 16.75 million.   

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