Activity moderates ahead of weekly T-Bill auction

By Wealth Trust Securities

The secondary bond market commenced the week on a sluggish note yesterday as activity moderated considerably. Limited trades were seen on the maturities of 15.12.22, 15.07.23 and 15.09.24 at levels of 5.80% to 5.83%, 6.20% and 6.62% respectively.

Today’s auction, conducted a day ahead due to a shortened trading week, will have on offer a total amount of Rs. 45 billion, consisting of Rs. 10 billion each on the 91-day and the 182-day maturities and a further Rs. 25 billion of the 364-day maturity. At last week’s auction, weighted average rates increased across the board by five, four and one basis point respectively on the 91-day, 182-day and 364-day maturities to 4.95%, 5.03% and 5.10%. The maximum yield rate for acceptance on the 364-day maturity remained steady at 5.10%, while the yield rates of the 91-day and 182-day maturities will be decided below the level of the 364-day maturity at the auction.

In the secondary bill market, May 2021 and January 2022 maturities traded at levels of 4.95% and 5.10% respectively.

The total secondary market treasury bond/bill transacted volume for 5 March was Rs. 5.05 billion.   

In the money market, overnight surplus liquidity stood at Rs. 174.39 billion yesterday, while weighted average rates on call money and repo was registered at 4.55% each.

USD/LKR 

In the forex market, USD/LKR rate on the more active one-week forward contracts were seen closing the day at Rs. 197.50/198.00 against its previous day’s closing level of Rs. 196.50/197.00.

The total USD/LKR traded volume for 5 March was $ 49.25 million.   

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