Auction accepted amount dips week on week

• Bond yields steady; rupee appreciates

By Wealth Trust Securities

The total accepted amount at yesterday’s weekly Treasury bill auction was seen decreasing to Rs. 25.89 billion in comparison to Rs. 34.32 billion accepted the previous week with Rs 40 billion been offered in each instance. 

The weighted averages on the 91 day and 364 day maturities were recorded at its cut off rates of 4.67% and 5.00% respectively while the 182 day maturity was recorded at 4.77%, 01 basis point below its cut off. The bids to offer ratio stood at 1.35:1. 

Activity in the secondary bond market remained moderate yesterday with limited trades seen on the maturities of 2027’s (15.08.27 and 15.10.27) and 01.07.28 at levels of 7.15%, 7.18% and 7.25% respectively. A March 2021 bill was seen changing hands at 4.67%.

The total secondary market Treasury bond/bill transacted volumes for 8 December was Rs. 1.65 billion.   

The overnight surplus liquidity continued to remain high at Rs. 238.28 billion yesterday while call money and repo remained steady to average 4.54% and 4.56% respectively.

Rupee appreciates

The USD/LKR rate on spot contracts were active once again yesterday as it was seen appreciating to close the day at Rs. 185.60/90 yesterday in comparison to its spot next closing rate of Rs. 186.30/70 recorded the previous day.

The total USD/LKR traded volume for 8 December was $ 58.50 million.  

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