Sunday Sep 29, 2024
Sunday Sep 29, 2024
Thursday, 6 June 2024 00:08 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury bill auction conducted yesterday, the entire offered amount of Rs. 235 billion was snapped up at the 1st phase, marking the largest Treasury bill auction in Sri Lanka’s history a successful one. The total bids received exceeded the offered amount by 1.54 times, an impressive outcome given the scale of the auction. However, weighted average yields were seen edging up on the 91-day maturity by 8 basis points to 8.70% and the 364-day maturity by 9 basis points to 9.27%, while the rate on the 182-day maturity remained stable at 9.04%. Interestingly, the amounts accepted on the 182- and 91-day maturities was seen exceeding its offered amounts of by 28.26% and 50.16% respectively.
Prior to this round of auctions, averages had been on a steady downward trend for 8 straight consecutive weeks, with declines across all three maturities.
The 2nd phase of subscription, only on the 364-day maturity will be opened until 4:00 pm on the day before the settlement date (i.e., 6.6.2024) at the respective weighted averages determined at the 1st phase of the auction. Given below are the details of the auction;
Meanwhile, the secondary bond market started off slow with sparse trades but saw an increase in activity after the auction results were released. The reversal in the downward trend at the Treasury bill auction caused a minor sell-off. As a result, yields moved up further compared to the previous day, while activity and transaction volumes remained moderate.
Accordingly, the popular 15.12.26 maturity was seen increasing from 9.85% to 9.86%. The 2028 tenors also saw yields edging up with the 15.03.28 maturity trading at 10.85%, the 1.7.28 maturity moving up from 10.90% to 10.95% and 15.12.28 maturity moving up from 10.91% to 11.00%. The medium tenor 15.05.30 maturity was seen changing hands up from 11.70% to 11.75%, while the 1.7.32 maturity traded at 10.87% to 10.89% and the 1.10.32 from 11.90% to 11.95%. Additionally, the 15.07.29 maturity was observed trading at 11.30% prior to the auction.
The total secondary market Treasury bond/bill transacted volume for 4 May was Rs. 3.43 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.66% and 8.72% respectively while the net liquidity was a surplus Rs. 166.97 billion yesterday. An amount of Rs. 0.51 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50% against an amount of Rs. 167.48 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.50%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day, marginally down at Rs. 302.35/302.45, against its previous day’s closing level of Rs 302.10/302.20.The total USD/LKR traded volume for 4 June was $ 51.43 million.
References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies
