Positive sentiment at T-Bill auctions continue

• Secondary bond market activity remains moderate

By Wealth Trust Securities

The positive sentiment at the weekly Treasury bill auctions continued yesterday as well, with the total accepted volume increasing to 96.38% of its total offered volume against its previous weeks 90.28%.

The 91-day bill continued to lead the way with an accepted volume of Rs. 31.20 billion or 83.02% of the total accepted volume. The weighted average rate on the 91-day maturity increased by one basis point to 5.13%, while the weighted averages on the 182-day and 364-day bills remained steady at 5.14% and 5.18% respectively. The bids-to-offer ratio increased further to 1.76:1. 

In the secondary bond market, activity remained moderated yesterday with only the 15.11.22 and 15.11.23 maturities changing hands at levels of 5.63% and 6.25% respectively. In secondary market bills, 20 August 2021 changed hands at a level of 5.10%.

The total secondary market Treasury bond/bill transacted volume for 21 May was Rs. 2 billion.   

In the money market, the overnight net surplus liquidity was registered at Rs. 120.57 billion yesterday, while the weighted average rates on overnight call money and repo was recorded at 4.67% and 4.72% respectively.

USD/LKR   

In Forex markets, the overall market continued to remain inactive. The total USD/LKR traded volume for 21 May was $ 80 million.   

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