Bond market activity moderates ahead of weekly T-Bill auction; rupee steady

By Wealth Trust Securities

The activity levels in the secondary bond market moderated yesterday, as only the 2025 maturities (i.e., 01.06.25 & 01.07.25) changed hands at a level of 29.00%.

The weekly Treasury bill auction due today will see a total volume of Rs. 85 billion on offer, an increase of Rs. 20 billion over its previous week’s total offered volume. This will consist of Rs. 35 billion on the 91 day, Rs. 28 billion on the 182 day and Rs. 22 billion on the 364-day maturities. 

At last week’s auction, weighted average rates decreased across the board for a second consecutive week to 31.95%, 30.63% and 29.87%, recording decreases of 76, 19 and 39 basis points on the 91-day, 182-day and 364-day maturities respectively. 

The total offered amount of Rs. 65 billion was accepted at the auction while a further amount of Rs. 16.25 billion was raised at its phase II.

In the secondary bill market, October, November and December and September 2023 maturities traded at levels of 20.5% to 25.75%, 27.00% to 30.00%, 24.00% to 31.50% and 26.00% to 29.60% respectively.

 The total secondary market Treasury bond/bill transacted volume for 26th September was Rs. 3.53 billion.  

In money markets, the net liquidity deficit stood at Rs. 429.47 billion yesterday as an amount of Rs. 329.32 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 758.79 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. 

The weighted average rate on overnight REPO stood at 15.50%.

 Forex Market

In the Forex market, the middle rate for USD/LKR spot contracts remained steady for an eight consecutive day at Rs. 362.90.

The total USD/LKR traded volume for 26th September was $ 8.88 million. 

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