Saturday Sep 28, 2024
Saturday Sep 28, 2024
Friday, 13 October 2023 00:41 - - {{hitsCtrl.values.hits}}
BY Wealth Trust Securities
The Treasury bond auctions conducted yesterday saw its total offered amount of Rs. 25 billion fully snapped up at its 1st and 2nd phases. The 01.08.26 maturity recorded a weighted average of 15.24%, as against a rate of 15.80% when it was last offered at an auction held on 28 August 2023. Meanwhile, the 15.05.30 maturity was issued at a weighted average of 13.56% in comparison to its previous average of 15.67%, when it was last offered on 13 July 2023.
An additional amount of 20% or Rs 2.5 billion will be on offer only on the 01.08.2026 maturity at its weighted average, through its direct issuance window, until close of business today (i.e., 4.00 p.m. on 13.10.23).
The secondary bond market rallied after the announcement of the bond auction results, with buying interest pushing yields down on the back of a surge in activity. Trading was predominantly concentrated on the two 2026’s of 01.06.2026 and the auction maturity of 01.08.2026 which saw yields decline from 15.20% to 15.05% levels.
In secondary bills, January 2024 maturities changed hands at 16.25% to 16.30%.
The total secondary market Treasury bond/bill transacted volume for 11 October 2023 was Rs.48.29 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 10.54% and 10.89% respectively while the net liquidity deficit stood at Rs.110.61 billion yesterday.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight and 7-day reverse repo auction for 38.35 billion and 40 billion at weighted average rates of 10.46% and 13.41% respectively. An amount of Rs.72.26 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 11.00%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day at Rs.323.75/323.90 against its previous day’s closing level of Rs.323.80/323.95.
The total USD/LKR traded volume for 11 October was $ 20.20 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
