All-time high volume on offer at weekly auction

By Wealth Trust Securities 

The weekly Treasury bill auction due today will see an all-time high volume of Rs. 97 billion on offer, consisting of Rs. 35 billion on the 91-day maturity, Rs. 27 billion on the 182-day maturity, and Rs. 35 billion on the 364-day maturity, reflecting an increase of Rs. 16 billion in comparison to its previous week’s offered volume. At last week’s auction, weighted average rates for all three maturities increased by 12, 10 and 5 basis points to 8.38%, 8.40% and 8.44%, respectively, while the auction was fully subscribed for a second consecutive week.

Meanwhile, the new treading week commenced on a dull note as activity in the secondary bond market was at a standstill yesterday. The 15.12.22, 15.03.25, and 01.12.31 maturities changed hands at levels of 8.80%, 11.05%, and 11.92% to 12.04%, respectively.

The total secondary market Treasury bond/bill transacted volume for 13 January 2022 was Rs. 19.88 billion.

In money markets, the Domestic Operations Department (DOD) of the Central Bank was seen draining out an amount of Rs. 62.55 billion by way of overnight repo auction at a weighted average rate of 5.97%.

USD/LKR 

In the Forex market, the overall market remained inactive yesterday. The total USD/LKR traded volume for 13 January 2022 was $ 44.10 million. 

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