Mixed outcome at weekly auction

• Secondary market bond yields dip further

By Wealth Trust Securities

The weekly Treasury bill auction recorded a mixed outcome as weighted averages of the 91 day and 182 day bill were seen decreasing while the benchmark 364 day bill was seen holding steady at 9.91%.   

The 91 day and 182 day recorded dips of 06 basis points and 05 basis points respectively to 8.94% and 9.14%. The exact offered amounts of Rs. 4 billion, Rs. 5 billion and Rs. 16 billion on the three maturities were accepted at the auction as the bids to offer ratio stood at 2.57:1. 

In the secondary bond market, yields continued to decrease yesterday with the liquid maturities of 15.03.24 and 01.05.29 hitting intraday lows of 10.90% and 11.23% respectively against its previous day’s closing levels of 10.90/95 and 11.20/30. Furthermore, a limited amount of activity was witnessed on the two 2027 maturities (i.e. 15.01.27 and 15.06.27) at levels of 11.15% to 11.17% and 11.20% to 11.22% respectively as well.  

The total secondary market Treasury bond/bill transacted volumes for 23 April was Rs.3.45 billion. 

Meanwhile in money markets, the net liquidity surplus stood at Rs. 27.33 billion yesterday with an amount of Rs.46.82 billion been deposited at CBSL’s Standing Deposit Facility (SDF) at the rate of 8.00% against an amount Rs. 13.49 been drawn down from its Standing Lending Facility (SLF) at the rate 9.00%. 

Further the OMO department of Sri Lanka was seen injecting amounts of Rs. 6.00 billion and Rs. 12.00 billion by way of an overnight and 14 day reverse repo auction at weighted averages of 8.54% and 8.57% respectively.  

The overnight call money and repo rates remained mostly unchanged to average 8.53% and 8.61% respectively.

Rupee dips further

The USD/LKR rate on its spot contract dipped further yesterday to close the day at Rs.174.90/30 against its previous day’s closing of Rs.174.60/90 on the back of continued buying interest by Banks. 

The total USD/LKR traded volume for 23 April was $ 25.40 millionGiven are some forward USD/LKR rates that prevailed in the market: one month – 176.00/40; three months – 178.00/40; six months – 180.90/40.