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Tuesday, 12 July 2022 02:17 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weighted averages at yesterday’s Treasury bond auctions continued its steep increasing trend as the three year maturity of 01.06.2025 recorded a jump of 441 basis points or 4.41% to 28.18% in comparison to its previously recorded average while only Rs. 3.54 billion was accepted against an offered amount of 30 billion. The seven year maturity of 15.07.2029 registered a weighted average of 26.51% while its total offered amount of Rs. 40 billion was accepted.
The phase 2 of the auction was opened for the 2025 maturity while a direct issuance window of 20% of the offered amount on the 2029 maturity will be opened until close of business of the day prior to settlement (i.e., 4 p.m. on 14.07.2022).
The very limited activity in the secondary bond market was witnessed subsequent to the auction results. The auctioned maturities of 01.06.25 and 15.07.29 were seen changing hands at levels of 28.50% and 31.00% to 31.40% respectively.
The weekly Treasury bill auction conducted today due to Wednesday been a public holiday will see a total volume of Rs. 65 billion on offer, a reduction of Rs. 5 billion over its previous week’s total offered volume. This will consist of Rs. 32 billion on the 91 day maturity and Rs. 16.5 billion each on the 182 day and 364 day maturities. At last week’s auction, weighted average rates increased by 423, 434 and 427 basis points on the 91 day, 182 day and 364 day maturities to 28.08%, 28.74% and 28.11% respectively. The total offered amount of Rs. 70 billion was successfully accepted at the auction while a further amount of Rs. 17.5 billion was raised at its Phase II of the auction.
The total secondary market Treasury bond/bill transacted volume for 8 July was Rs. 25.54 billion.
In money markets, the net liquidity deficit stood at Rs. 383.39 billion yesterday as an amount of Rs. 272.07 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 655.46 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. The weighted average rates on REPO stood at 15.50%.
Forex market
In the Forex market, the middle rate for USD/LKR spot contracts depreciated to Rs. 361.35 yesterday against its previous day’s closing level of Rs. 360.3497.
The total USD/LKR traded volume for 8 July was $ 22.17 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
