Bullish momentum at weekly T. Bill auction continues

Thursday, 15 June 2023 00:55 - - {{hitsCtrl.values.hits}}

1 year bill drops to 18.00%

By Wealth Trust Securities

The weekly Treasury bill weighted average rates were seen continuing its bullish momentum, recording considerable dips on the 6 months and 1-year bills for a second consecutive week.

The market favourite 6 month or 182-day bill recorded the steepest drop of 129 basis points to 20.61% closely followed by the 1 year or 364-day bill by 102 basis points to 18.08%. However, the 3 month or 91-day bill dipped by only 05 basis points to 23.16%.

The total offered volume of Rs. 180 billion was fully accepted at the auction while the 2nd phase of the auction will be opened on all three maturities at its weighted average rates until close of business of the day prior to settlement (i.e., 3.30 p.m. on 15.06.23).

The secondary bond market remained active yesterday as the maturities of 01.07.25 and two 2027’s (i.e., 01.05.27 & 15.09.27) traded at levels of 25.75% to 26.00% and 22.60% to 23.10% respectively.

The total secondary market Treasury bond/bill transacted volume for 13 June was Rs. 9.21 billion.

In money markets, the weighted average rates on overnight call money and REPO stood at 13.75% and 14.00% respectively as the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for a volume of Rs. 50.00 billion at weighted average rate of 13.47%. An amount of Rs. 85.60 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 14.00%.

Forex Market

In the Forex market, the rupee rate on spot contracts was traded at Rs. 308.00 to Rs. 309.00 yesterday against its previous day’s closing level of Rs.305.00/309.00.

The total USD/LKR traded volume for 13 June was $ 34.30 million.

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

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