Activity dips once again ahead of weekly T-bill auction

By Wealth Trust Securities

The activity in the secondary bond market decreased once again yesterday, as only the 15.10.21 maturity changed hands at a level of 5.15%. In the secondary bill market, 09th July 2021 maturity traded at a level of 5.20%.  

The weekly bill auction due today will see a total amount of Rs.45 billion on offer, consisting of Rs.10 billion of the 91 day maturity, Rs.15 billion of the 182 day maturity and a further Rs.20 billion of the 364 day maturity. At last week’s auction, the 91 day weighted average yield increased by 01 basis point to 5.09% while weighted average rates on the 182 day and 364 day maturities remained steady at 5.12% and 5.15% respectively.  The stipulated cut off rate on the 364 day maturity was increased by 03 basis points to 5.18% while the maximum yield rates of the 91 day and 182 day maturities will be decided below the level of the 364 day maturity at the auction.

The total secondary market Treasury bond/bill transacted volume for 19th of April 2021 was Rs.5.65 billion.  

In money markets, the net liquidity surplus increased further to Rs.119.81 billion yesterday as CBSL’s SLFR of 5.50% was not accessed for the first time since 17th March 2021.  The weighted average rates on call money and repo remained mostly unchanged at 4.65% and 4.67% respectively.

USD/LKR 

In Forex markets, the USD/LKR rate on 01 month forward contracts were seen closing the day at levels of Rs.204.00/206.00 yesterday in comparison to its spot contract closing of Rs.194.00/198.00 the previous day. 

The total USD/LKR traded volume for 19th April 2021 was US $ 77.40 million.   

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