Demand at weekly bill auction dips to an 11-week low

Thursday, 17 June 2021 00:43 - - {{hitsCtrl.values.hits}}

Bond yields dip marginally

By Wealth Trust Securities

The total accepted amount at yesterday’s weekly Treasury bill auction decreased considerably to an 11-week low of 39.76%, as only an amount of Rs. 19.88 billion was successfully taken up against a total offered amount of Rs. 50 billion. The accepted amount on the 91-day bill decreased to Rs. 14.83 billion against its previous week amount of Rs. 28.08 billion.

The weighted average rate on the 91-day bill increased for a fourth consecutive week, recording an increase of one basis point to 5.17%, while the 182-day bill weighted average rate remained steady at 5.17%. The weighted average rate on the 364-day bill was registered at its stipulated cut-off rate of 5.21%. The bids-to-offer ratio decreased to 1.29:1.

Buying interest on 2023 maturities saw yields on the 15.03.23, 15.07.23, 01.09.23 and 15.11.23 dip to intraday lows of 5.85%, 6.08%, 6.12% and 6.22 % respectively, while yields on the rest of the yield curve remained broadly steady.

The total secondary market Treasury bond/bill transacted volume for 15 June was Rs. 7.37 billion.

In money markets, weighted average rates on overnight call money and repo increased to average at 4.82% and 4.86% respectively, as the net overnight liquidity surplus decreased further to Rs. 82.62 billion yesterday. An amount of Rs. 118.69 billion was deposited at Central Banks SDFR of 4.50%, while an amount of Rs. 36.07 billion was withdrawn from Central Banks SLFR of 5.50%.

USD/LKR

The Forex market continued to remain inactive yesterday. The total USD/LKR traded volume for 15 June was $ 54.15 million.

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