Moderate activity continues ahead of weekly bill auction

By Wealth Trust Securities

The activity in the secondary bond market continued at a moderate pace yesterday ahead of today’s Treasury bill auction. In limited trades, yields of the 15.11.23 and 01.10.25 maturities increased marginally to change hands at levels of 6.31% to 6.33% and 7.28% respectively against its previous day’s closing level of 6.28/30 and 7.25/28. In addition, maturities of 15.01.23 and 01.12.24 traded at levels of 5.72% to 5.75% and 6.88% respectively.

At today’s bill auction, a total volume of Rs. 30.5 billion will be on offer, Rs.15.5 billion below its previous weeks total offered volume. This will consist of Rs. 08 billion on the 91 day, Rs. 10 billion on the 182 day and Rs. 12.5 billion on the 364 day maturities. 

The stipulated cut off rate on the 364 day maturity was increased by 05 basis points to 5.33% while the maximum yield rates of the 91 day and 182 day maturities will be decided below the level of the 364 day maturity. At last week’s auction, the total accepted volume increased to a three week high of 87.03% of its total offered volume while the weighted average rates increased across the board by 02, 01 and 03 basis points respectively to 5.24% each and 5.28%.

The total secondary market Treasury bond/bill transacted volume for 9 August was Rs. 2.93 billion.   

In money markets, the net liquidity surplus decreased marginally to Rs. 47.44 billion yesterday with an amount of Rs. 146.26 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 98.81 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo decreased marginally to 5.02% and 5.07% respectively.

USD/LKR   

In Forex markets, the overall market continued to remain inactive yesterday.

The total USD/LKR traded volume for 9 August was $ 34.75 million.   

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