Average rates remain steady

• Moderate activity in bond markets
• Rupee dips marginally

 By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday saw its total accepted amount plunge to a 2 year low of 13.69% of its total offered amount. Only an amount of Rs. 10.27 billion was accepted in total against a total offered amount of Rs. 75 billion while weighted averages remained steady across all three maturities of 3 months, 6 months and 1 year at 32.89%, 31.28% and 30.50% respectively. 

Phase 2 of the auction or the opportunity for investors to buy will be opened on all three maturities at its weighted average rates until close of the business of the day prior to settlement (i.e. 3.30 p.m. on 08.09.22). 

Meanwhile, activity in the secondary bond market continued at a moderate pace centering the liquid maturities of 2025 (i.e. 01.06.25 and 01.07.25) as it changed hands at levels of 27.95% to 28.00%.

The total secondary market Treasury bond/bill transacted volume for 6 September was Rs. 3.15 billion.   

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka injected an amount of Rs. 75 billion by way of a 61 day Reverse Repo auction at a weighted average rate of 29.55%.

Furthermore, an amount of Rs. 798.25 billion was withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 15.50% while the weighted average rates on overnight REPO stood at 15.50%. The net liquidity deficit stood at Rs. 440.46 billion yesterday as an amount of Rs. 357.79 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 14.50%.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts was at Rs. 361.8056 yesterday against its previous day’s level of Rs. 361.4500.

The total USD/LKR traded volume for 6 September was $ 111.60 million.  

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