Bond auctions attract over 93.00% in successful bids

• Rs. 80 billion offered at weekly T-bills auction

By Wealth Trust Securities

The total accepted volume at yesterday’s bond auctions was seen increasing to 93.67% of its total offered volume as against 41.34% at its previous round of auctions conducted on the 11th of November. The bids to offer ratio increased to 2.41:1.

The auction maturity of 01.05.2024 recorded a weighted average of 32.71% while its 2nd phase was opened as its offered amount of Rs. 25 billion went undersubscribed. 

The 15.05.2026 offered amount of Rs. 25 billion was fully subscribed at its 1st phase at a weighted average of 31.69%, leading to an additional 20% been offered through its direct issuance window until close of business today (i.e., 4.00 pm on 30.11.22). 

In the secondary bond market, post auctions, the 15.05.26 maturity changed hands at 31.30% while in secondary bills, 24th February 2023 maturity traded at 33.00%.

Today’s weekly Treasury bill auction will have in total an amount of Rs. 80 billion on offer, an unchanged offered volume over the last 2 weeks. This will consist of Rs. 35 billion on the 91-day maturity, Rs. 25 billion on the 182-day maturity and a further Rs. 20 billion on the 364-day maturity. At last week’s auction, weighted average rates decreased across the board by 14, 06 and 01 basis points respectively to 32.92%, 32.45% and 29.52%. The total offered amount of Rs. 80.00 billion was fully accepted at the auction while its 2nd phase was not on offer.

The total secondary market Treasury bond/bill transacted volume for 28 November 2022 was Rs. 1.00 billion.   

In money markets, the weighted average rate on overnight call money and REPO stood at 15.50% each while an amount Rs. 571.73 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. 

The net liquidity deficit reduced to Rs. 231.52 billion yesterday as an amount of Rs. 340.21 billion been deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50%.

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts was at Rs. 363.1875 yesterday against its previous day’s level of Rs. 363.0000. The total USD/LKR traded volume for 28th November was $ 39.70 million.  

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