Tuesday Nov 19, 2024
Tuesday Nov 19, 2024
Thursday, 7 November 2024 01:16 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury bill auction conducted yesterday, weighted average rates were seen edging up on the shorter tenors for the second consecutive week. Accordingly, the weighted average rate on the 91-day tenor increased by 02 basis points to 9.37%, while the 182-day tenor also rose by 02 basis points to 9.70%. However, the weighted average rate on the 364-day tenor remained unchanged at 9.95%. The bulk or 86.35% of the funds raised were on the 91-day and 182-day maturities. Total bids received exceeded the offered amount by 1.72 times, and the entire Rs. 175.00 billion on offer was successfully raised at its 1st phase.
The 2nd phase of subscription for the auction will be opened for the 182-day and 364-day tenors at the weighted average rates until close of business of the day prior to settlement (i.e., 4.00 p.m. on 07.11.2024). Given below are the details of the auction;
The yields in the Secondary Bond market dipped further yesterday, carrying over the bullish momentum from the previous day. market activity continued to increase and transaction volumes were seen at healthy levels.
The 01.02.26 was seen changing hands at the rate of 10.15%. The 2027 tenors continued to see strong demand. Accordingly, the 15.01.27, 01.05.27, 15.09.27 and 15.12.27 maturities were seen trading down from 10.65% to 10.62%, 11.36% to 11.25%, 11.40% to 11.35% and 11.50% to 11.40% respectively. The 15.02.28/15.03.28, 01.07.28 and 15.12.28 saw trades at the rates of 11.70%-11.67%, 11.75% and 11.90%-11.80% respectively.
The total secondary market Treasury bond/bill transacted volume for 5 November was Rs. 15.54 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.55% and 8.68% respectively.
The DOD (Domestic Operations Department) of the Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 16.99 billion at the weighted average rate of 8.47% respectively.
The net liquidity surplus stood at Rs. 152.57 billion yesterday. Rs. 0.05 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 9.25% as against an amount of Rs. 169.61 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate)
of 8.25%.
Forex market
In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 292.80/292.90 against its previous day’s closing level of Rs. 293.00/293.15.
The total USD/LKR traded volume for 5 November was $ 36.25 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money
broking companies)
