Downward momentum at weekly T-Bill auction continues

By Wealth Trust Securities

The weekly weighted average rates were seen continuing its positive drive, recording drops across all three maturities for a second consecutive week at its auctions held yesterday. The market favourite 91-day bill maturity recorded a dip of 21 basis points to 7.77%, while the 182-day and 364-day bills registered drops of nine and two basis points respectively to 8.03% and 8.17%. The total offered amount of Rs. 53 billion was successfully accepted at the auction for a fifth consecutive week as its bids-to-offer ratio stood at 3.39:1. 

In the secondary bond market, yields declined marginally yesterday as the liquid maturities of 01.09.28 and 15.03.31 hit intraday lows of 11.40% and 11.83% respectively against its previous day’s closing levels of 11.50/60 and 11.87/95. In addition, 15.01.27 maturity changed hands at levels of 10.87% to 10.88%. In secondary bills, the latest 91-day bill maturity traded at low of 7.50%, post-auction.

The total secondary market Treasury bond/bill transacted volume for 15 November was Rs. 0.15 billion.   

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs. 10.10 billion and Rs. 6.29 billion by way of overnight and seven-day repo auctions at weighted average rates of 5.97% each, while an amount of Rs. 315.59 billion was withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 6%. The net liquidity deficit was registered at Rs. 226.22 billion yesterday as an amount of Rs. 72.98 billion was deposited at the Central Bank’s SDFR (Standard Deposit Facility Rate) of 5%. The weighted average rates on overnight Call money and repo remained mostly unchanged at 5.92% and 5.97% respectively.

USD/LKR   

In the Forex market, the USD/LKR rate on spot and cash contracts traded at a level of Rs. 203 while the overall market remained inactive yesterday.

The total USD/LKR traded volume for 15 November was $ 52 million.   

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