All-time high volume on offer at weekly Treasury bill auction

Wednesday, 20 April 2022 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weekly Treasury bill auction due today will see an all-time high volume of Rs. 97.5 billion on offer, consisting of Rs. 47.5 billion on the 91-day maturity, Rs. 27.5 billion on the 182-day maturity, and Rs. 22.5 billion on the 364-day maturity, showcasing an increase of Rs. 10 billion in comparison to its previous week’s offered volume.

At last week’s auction, the first following the steep monetary policy adjustment, weighted average rates increased across the board by 559, 737, and 767 basis points on the three-month, six-month, and one-year maturities respectively to 19.71%, 22.73%, and 23.36%.

The six-month and one-year averages were levels not seen in over 25 years.

The secondary bond market remained at a standstill yesterday while in secondary bills, 91-day, 182-day, and 364-day maturities changed hands at levels of 20.50% and 24% each respectively.

The total secondary market Treasury bond/bill transacted volume for 18 April was Rs. 2.59 billion.

In money markets, the weighted average rates on overnight Call money and Repo remained steady at 14.50% each as an amount of Rs. 733.36 billion was withdrawn from the Central Bank’s SLFR (Standard Deposit Facility Rate) of 14.50%. The net liquidity deficit was registered at Rs. 603.43 billion yesterday as an amount of Rs. 129.93 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 13.50%.

Forex Market

The Forex market continued to remain inactive.

The total USD/LKR traded volume for 18 April was $ 3.50 million.

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